Question: Using the data given for Suds Enterprises in E5A and

Using the data given for Suds Enterprises in E5A and assuming that the company uses the average costing method, compute the equivalent units of production for direct materials and conversion costs for August.
In E5A, Suds Enterprises makes Perfecto Shampoo for professional hair stylists. On July 31, it had 5,000 liters of shampoo in process that were 80 percent complete in regard to conversion costs and 100 percent complete in regard to direct materials costs. During August, it put 210,000 liters of direct materials into production. Data for Work in Process Inventory on August 31 were as follows: shampoo, 10,000 liters; stage of completion, 60 percent for conversion costs and 100 percent for direct materials. Using the FIFO costing method, compute the equivalent units of production for direct materials and conversion costs for the month.


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  • CreatedMarch 26, 2014
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