Manassass Company manufactures chairs. The following information was given for the company:- Units, beginning work in process: 0- Units started: 20,000- Units completed: ?- Units, ending work in process: 5,000- Cost of direct materials: $440,000- Cost of conversion: $64,000Materials in the ending inventory were 100% complete, and conversion in the ending inventory was 20% complete. What are the equivalent units for materials and conversion, respectively?Options:- a. 20,000; 20,000- b. 15,000; 15,000- c. 20,000; 16,000- d. 15,000; 14,000

Equivalent units of completion means the units on which the work has been done in a particular year. It is computed for materials and conversion costs in the process costing system.Equivalent units - Material=Units completed and transferred×Percentage completion+Ending units×Percentage completion=20,000-5,000×100%+5,000×100%=15,000+5,000=20,000 Equivalent units - Conversion=Units completed and transferred×Percentage completion+Ending units×Percentage completion=20,000-5,000×100%+5,000×20%=15,000+1,000=16,000 Thus, $20,000, $16,000 (option c.) is correct.

Business

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Mannassass Company manufactures chairs. The following information was given for the company: Units, beginning work in process Units started Units completed Units, ending work in process Cost of direct materials Cost of conversion 0 20,000 ? 5,000 $440,000 $64,000 Materials in the ending inventory were 100% complete, and conversion in the ending inventory was 20% complete. What are the equivalent units for materials and conversion, respectively? Oa. 20,000; 20,000 Ob. 15,000; 15,000 Oc. 20,000; 16,000 Od. 15,000; 14,000

Mannassass Company manufactures chairs. The following information was given for the company: Units, beginning work in process Units started Units completed Units, ending work in process Cost of direct materials Cost of conversion 0 20,000 ? 5,000 $440,000 $64,000 Materials in the ending inventory were 100% complete, and conversion in the ending inventory was 20% complete. What are the equivalent units for materials and conversion, respectively? Oa. 20,000; 20,000 Ob. 15,000; 15,000 Oc. 20,000; 16,000 Od. 15,000; 14,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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