The Following Information Is Provided by Gibson Company The Units in Ending WIP Inventory Were 85% Complete for |

question 76

Essay

The following information is provided by Gibson Company:
$$\begin{array} { | l | r | } \hline \text { WIP inventory, January 1 } & \text { 0 units } \\\hline \text { Units started } & 20,000 \text { urits } \\\hline \begin{array} { l } \text { Units completed and } \\\text { transferred out }\end{array} & 17,500 \text { units } \\\hline \text { WIP inventory, December 31 } & 2,500 \text { units } \\\hline \text { Direct materials } & \$ 25,300 \\\hline \text { Direct labor } & \$ 17,400 \\\hline \text { Manufacturing overhead } & \$ 26,700 \\\hline\end{array}$$ The units in ending WIP inventory were 85% complete for materials and 35% complete for conversion costs.
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:

Deceptive Practices

Actions or practices that mislead consumers or businesses, often involving false promises or misrepresentation of products or services.

Cease-and-Desist Order

A legal order issued by a court or governmental agency demanding that a party stop a specified activity or breach of regulation.

Rights of Appeal

Legal entitlements allowing a party to request a formal change to an official decision through a higher court.

Federal Trade Commission

A U.S. federal agency tasked with protecting consumer rights and eliminating anticompetitive business practices.