# 540 eq units equivalent units 5940 conversion the

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540 equnitsEquivalent units = 5,940CONVERSIONThe beginning WIP is not included in the calculation5400 units were transferred outThe ending WIP (900 units) is 30% complete 270 equnitsEquivalent units = 5,670Calculated as Units transferred out + Units in ending WIP
Quick CheckAlberts Inc began the current month with 4,000 units 75% complete. Alberts started 15,000 units and completed 14,000 units, leaving 5,000 units in process 30% complete. How many equivalent units of production did Alberts have for the period?
Calculation of Equivalent units under WAM -SMITHMATERIALSThe beginning WIP is not included in the calculation5400 units were transferred outThe ending WIP (900 units) is 60% complete 540 equnitsEquivalent units = 5,940CONVERSIONThe beginning WIP is not included in the calculation5400 units were transferred outThe ending WIP (900 units) is 30% complete 270 equnitsEquivalent units = 5,670Calculated as Units transferred out + Units in ending WIP
Using the Cost per equivalent unit under WAM -SMITHCalculation of ending WIP inventoryMaterials 540 equiv units x \$21 + Conversion 270 equivalent units x \$15 = \$15,390Calculation of costs transferred out, cc = WIP0+ costs added WIP1c = (6119+3920) + (118621+81130) 15390c = \$194,400
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The calculations depend on the methodMethodWAMFIFOApplicable eq units of productionAll units completed + equivalent units in endinginventoryUnits based on work doneApplicable CostsCosts in beginninginventory + costs added to departmentCosts added to department
Quick CheckShetty Company uses the weighted-average method in its process costing system. The following information pertains to one of its processing departments for the current month:All materials are added at the beginning of the process. The cost per equivalent unit for materialsis closest to:
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