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# Equivalent units of production for materials and conversion

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Use the following information to answer questions 39 - 42. For January, a firm's equivalent units of production for materials and conversion costs are 20,000 and 16,000, respectively. The total cost of materials used during the month is \$64,000, and conversion costs are \$80,000. Materials costs and conversion costs in the beginning Work in Process Inventory totaled \$12,000 and \$16,000, respectively. Ending Work in Process Inventory is 4,000 units, 100% complete as to materials and 20% complete as to conversion costs. (The firm uses the average costing approach).

The cost per equivalent unit as to materials is:
Answer:
a. \$1.20
b. \$7.60
c. \$3.80
d. \$5.70
____

The cost per equivalent unit as to conversion costs is:
Answer:
a. \$ 2.00
b. \$12.00
c. \$ 8.00
d. \$ 6.00

______

The cost of ending Work in Process Inventory as to conversion costs is:
Answer:
a. \$ 0
b. \$ 4,800
c. \$19,200
d. \$24,000

_______

The cost of goods transferred to Finished Goods Inventory is:
Answer:
a. \$132,800
b. \$152,000
c. \$156,800
d. \$167,200

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#### Solution Preview

Use the following information to answer questions 39 - 42. For January, a firm's equivalent units of production for materials and conversion costs are 20,000 and 16,000, respectively. The total cost of materials used during the month is \$64,000, and conversion costs are \$80,000. Materials costs and conversion costs in the beginning Work in Process Inventory totaled \$12,000 and \$16,000, respectively. Ending Work in Process Inventory is 4,000 units, 100% complete as to materials and 20% complete as to ...

#### Solution Summary

This solution is comprised of a detailed explanation and calculation to answer the cost per equivalent unit as to materials, the cost per equivalent unit as to conversion costs, the cost of ending Work in Process Inventory as to conversion costs, and the cost of goods transferred to Finished Goods Inventory.

\$2.49