Question
Materials are added at the end of the process in a company's curing department, the second stage of the production cycle. The following information is
Materials are added at the end of the process in a company's curing department, the second stage of the production cycle. The following information is available for the month of July:
Units
Work in process, July 1 (50% complete as to conversion cost) 50,000
Transferred from the previous department 200,000
Transferred to the next department 195,000
Lost in production 15,000
Work in process, July 31 (60% complete as to conversion cost) 40,000
Under the cost accounting system, the cost incurred on thelost units are absorbed by the remaining good units. Usin the average cost method, what are the equivalent units for the materials unit cost calculations?
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