Can someone explain to me the difference between these two questions? I find 88,
ID: 2401501 • Letter: C
Question
Can someone explain to me the difference between these two questions? I find 88,000 to be the answer to both questions, but I feel like that can't be right.
Given the following data, compute equivalent units of production for conversion costs:
Beginning Work in Process—8,000 units, 40% complete
Units Completed and Transferred Out—90,000 units
Ending Work in Process—6,000 units, 20% complete.
a. 88,000
b. 91,200
c. 94,400
d. 96,000
Given the following data, compute equivalent units of production for materials costs. Materials are added at the beginning of the process.
Beginning Work in Process—8,000 units, 40% complete
Units Completed and Transferred Out—90,000 units
Ending Work in Process—6,000 units, 20% complete.
a. 88,000
b. 91,200
c. 94,400
d. 96,000
Explanation / Answer
Both the questions are different. In the first one equivalent units of production for conversion costs is to be calculated and in the other one equivalent units of production for materials costs.
1) b. 91,200
Equivalent units of production for conversion costs = 90,000 + (6,000 * 20%) = 90,000 + 1,200 = 91,200
2) d. 96,000
Equivalent units of production for materials costs = 90,000 + 6,000 = 96,000