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EA11.
LO 5.3Mazomanie Farm completed 20,000 units during the quarter and has 2,500 units still in process. The units are 100% complete with regard to materials and 55% complete with regard to conversion costs. What are the equivalent units for materials and conversion?

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Answer:

An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period.

Material equivalent units:

Eq units = completed units + (still in process * % completion)

             = 20,000 + 2500 *100% = 22,500 units

Conversion equivalent units:

Eq units = completed  + (still in process * % completion)

              = 20,000 + (2500 * 55%)

              = 21,375 units

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