Suppose Smith started 100,000 units during the period, transfers 75,000 units to finished goods and estimates that 25,000 units still in process.Smith has issued all the needed materials, but has completed only 20% of the assembly work.What is the number of total equivalent units in work in process for material and conversion at the end of the period?
A)100,000 material/25,000 conversion.
B)25,000 material/5,000 conversion.
C)25,000 material/25,000 conversion.
D)75,000 material/75,000 conversion.
E)100,000 material/100,000 conversion.

Question

Quizplus · Accepted Answer

The number of equivalent units for material is the total number of units either completed or still in process, which is 75,000 (transferred to finished goods) + 25,000 (still in process) = 100,000. The number of equivalent units for conversion is the percentage of completion multiplied by the total units still in process, which is 20% x 25,000 = 5,000. Therefore, the total equivalent units in work in process for material and conversion is 25,000 material / 5,000 conversion.

Suppose Smith Started 100,000 Units During the Period, Transfers 75,000