Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company

The total equivalent units for conversion cost = 45,600 ounces

Explanation:

Let us arrange the information in a tabular form to help in solution:

                                                                        % conversion    equivalent units

Particulars                              whole units       completed      for conversion

Beginning inventory in process      4,000                  40%                    1,600

started and completed in period  42,000**               100%                42,000

completed . . . . . . . . . . . . . . . . . .    46,000                                           43,600

ending inventory in process . . . .    8,000                   25%                   2,000

Total units to be assigned cost    54,000                                           45,600                      

Therefore, the total equivalent units for conversion cost = 45,600 ounces

**Note the inventory that was started and completed within the period is the inventory that was 100% completed within the period and it is the difference between the total inventory completed within the period and the beginning inventory, and this is represented as:

46,000 - 4,000 = 42,000 ounces.

d.

Explanation:

From the given information;

the quarter average sale = expected total sales ÷ number of quarter

= 14800 ÷ 4

= 3700

The forecast for the first quarter = average quarter sale × seasonal factor

= 3700 × 0.70

= 2590

Thus, the expected sales is more than 2500 but lesser than 3000