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?
Definitions:
Uncollectible Accounts
Accounts receivable that a company does not expect to collect due to customers' inability to pay.
Percentage of Sales
A financial ratio that helps determine the relative profitability of a product by comparing the percentage of total sales that the product represents.
Aging Analysis
A method used to estimate the collectability of accounts receivable by categorizing them according to their age, usually in 30-day increments.
Historical Relationship
Refers to the analysis of past interactions or correlations between variables to predict future trends or behaviors.
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