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Exercise 3-9 Calculation of Equivalent Units

Exercise 3-9 Calculation of Equivalent Units
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Solution Guide / Answer Key:

ACCOUNTING

MT425 / MT 425
Managerial Finance and Accounting
Kaplan University (KU Campus)

James Jiambalvo
Managerial Accounting, 4e
Hoboken, NJ: John Wiley & Sons.

Unit 3: Unit Costs for Decision Making

Chapter 3 Exercise 3-9 Calculation of Equivalent Units [LO 2] McMillian Tire Company produces tires used on small trailers. The month of June ended with 500 tires in process, 90 percent complete as to direct materials, and 50 percent complete as to conversion costs; 2,000 tires were transferred to finished goods during the month, and 2,400 were started during the month. The beginning Work in Process inventory was 60 percent complete as to direct materials and 40 percent complete as to conversion costs.

Required
Determine the denominators to be used in the calculations of cost per equivalent unit for materials and conversion costs.

 

FILE: MS WORD

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