Purchase Solution

Calculation of Equivalent Units

Not what you're looking for?

Ask Custom Question

McMillian Tire Company produces tires used on small trailers.The month of June ended with 500 tires in process, 90 percent complete as to direct materials,and 50 percent complete as to conversion costs;2,000 tires were transferred to finished goods during the month,and 2,400 were started during the month.The beginning Work in Process inventory was 60 percent complete as to direct materials and 40 percent complete as to conversion costs.

Required

Determine the denominators to be used in the calculations of cost per equivalent unit for materials and conversion costs.

Purchase this Solution
Solution Summary

The solution explains how to calculate equivalent units within the context of finance.

Solution Preview

Using the weighted average method
Equivalent unit = Units transferred + units in ...

Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

View More Free Quizzes
Related BrainMass Solutions

  • Distinct feature of the FIFO process costing method

    in the calculation of the equivalent units.

  • Equivalent units

    Under the method, lost units are charged to good output. The lost units are not considered in calculating the units costs. We would not consider the units lost in calculation of equivalent units.

  • Production Cost Report,Missing Information

    Cost per Equivalent Unit Calculation Material Labor Overhead Total Cost Beginning WIP $45,200 $10,500 $26,300 $ 82,000 Cost incurred in December ? ? ? ? Total ? ? ? ? Units Units completed ? ? ? Equivalent units, ending WIP ? ? ? Total ?

  • Physical Flow of Units, Equivalent Units, Unit & Total Costs

    Use the weighted-average method of process costing. 1. Analysis of physical flow of units. Physical Units Total units to account for Total units accounted for 2. Calculation of equivalent units.

  • Equivalent units

    Therefore Equivalent units= Actual number of partially completed units * Stage of completion Say 2000 units are 50% complete than, equivalent units= 2000*50%=1000 This explains the calculation of Equivalent units

  • Equivalent Units of Production - Weighted Method

    Cost added at Production 124,160 637,088 Total Cost 124,524 638,208 (b) Cost per Equivalent Unit 5.40 27.70 Cost of Units Transferred out Material Conversion Cost of 22900 units transferrred out 123,553 634,330 *Cost of transferred

  • Job order and activity-based costing

    Quantity Schedule and Equivalent Units Units to be accounted for: Qty. Sch.

  • Equivalent units using FIFO

    calculation of equivalent units under FIFO method

  • Equivalent Units

    Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. Please see the attached file. The solution explains the calculation of equivalent units under the FIFO method.

View More Related Solutions