Question
Please Help with the question A freshly started company has given the following details for a particular process: There was no beginning WIP Inventory. A
Please Help with the question A freshly started company has given the following details for a particular process: There was no beginning WIP Inventory. A new batch of 1240 units was introduced for processing at the beginning of the day. The company works 8 hours on a daily basis and a batch takes 6 hours of processing no matter how many units are introduced. In the first 6 hours, the entire 1240 units were completed and removed from WIP Inventory to Finished Goods Inventory. 990 additional units were introduced upon completion. Conversion Costs evenly throughout the process. Find out the equivalent units for conversion costs in the ending WIP Inventory
a. 330 units b. 990 units c. 1240 units d. 6200 units
A freshly started company has given the following details for a particular process: There was no beginning Work-in-Progress (WIP) Inventory. A new batch of 1240 units was introduced for processing at the beginning of the day. The company works 8 hours on a daily basis and a batch takes 6 hours of processing no matter how many units are introduced. In the first 6 hours, the entire 1240 units were completed and removed from WIP Inventory to Finished Goods (FG) Inventory. 990 additional units were introduced that were still incomplete at the end of the period. Conversion Costs (CC) are applied evenly throughout the process. Determine the equivalent units for conversion costs in the ending WIP Inventory. 330units990units1240units6200unitsStep by Step Solution
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