Chapter 8, Problem 25E

Equivalent Units and Cost of Production

By mistake, the production supervisor transposed the digits on the production report and reported a higher percentage of completion for each inventory component. Assume that there was no beginning inventory.

Required

What is the effect of this error on the following?

1. a.      The computation of total equivalent units.
2. b.      The computation of costs per equivalent unit.
3. c.       Costs assigned to cost of goods transferred out for the period.