Question

On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 82 canoes and transferred them to the Waterproofing Department. What are the Fabrication Department's equivalent units of production related to materials for July?

Answer 1

90 canoes

Step-by-step explanation:

Given:

Canoes in process = 20

percent completion = 40%

Number of canoes completed and transferred them to the Waterproofing Department = 82

Now,

The equivalent units of production

= Unit completed and transferred out + ( ending work in process × percent completion )

= 82 + ( 20 × 40% )

= 82 + 8

= 90 canoes