Quantity data of NICE company for the month of March 2020 ;

WIP, beg 12,000 units (20% completed); Started in process 58,000 units; WIP, end 17,000 units (80% completed) ; Lost units 8,000. Normal lost units are equivalent to 7% of the good units passing inspections.

Required:

1.Compute for EUP for materials if materials are applied at 70% completion and the inspection point is at 60% (USING AVERAGE METHOD)

2.Compute for EUP for conversion cost if materials are applied at end and the inspection point is at 90%

3.Compute for EUP for materials if materials were applied at 5 % completion and the inspection point is at 10% using AVERAGE METHOD

4.What is the EUP for conversion cost if materials are applied at start of the process and the inspection point at the end of the process? using AVERAGE METHOD

Answer rating: 100% (QA)

To solve these problems we need to use the concept of Equivalent Units of Production EUP based on th... View the full answer