The Following Information Is Provided by Wilson Company

question 87

Essay

The following information is provided by Wilson Company:

The units in ending WIP inventory were 65% complete for materials and 45% complete for conversion costs.All manufacturing costs are added during the process.
Required
A.What are the total equivalent units for direct materials?
B.At the end of the year,what are the equivalent units for conversion costs?

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Definitions:

Intra-entity Transactions

Transactions that take place between two divisions or units within the same company, affecting only internal accounts.

Accrual-based Income

A method of accounting that records revenue when it is earned and expenses when they are incurred, regardless of when cash is received or paid.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Deferred Income Taxes

Taxes applicable to income that are due in the future periods due to temporary differences between the tax base of assets or liabilities and their carrying amount in the financial statements.