In the cutting department, all the materials are added at the beginning of the p
ID: 2435307 • Letter: I
Question
In the cutting department, all the materials are added at the beginning of the process and conversion costs are added during the processing. During the first month of operations, the cutting department transferred 60,000 units to the sewing department. Ending inventory consisted of 2,400 units which were 25% complete with respect to conversion costs. What are the equivalent units for materials and for conversion costs, respectively?Answer
15,600 and 60,000
62,400 and 15,600
62,400 and 60,600
60,600 and 15,600
Explanation / Answer
In the cutting department, all the materials are added at the beginning of the process and conversion costs are added during the processing. During the first month of operations, the cutting department transferred 60,000 units to the sewing department. Ending inventory consisted of 2,400 units which were 25% complete with respect to conversion costs. What are the equivalent units for materials and for conversion costs, respectively? Answer 62,400 and 60,600