Logan,Inc ,Had 9,000 Units of Work in Process in Department

question 34

Essay

Logan,Inc. ,had 9,000 units of work in process in Department M on March 1 that were 50 percent complete as to conversion costs.Materials are introduced at the beginning of the process.During March,18,000 units were started,20,000 units were completed,and there were 1,000 units of normal losses.Logan had 6,000 units of work in process at March 31 that were 70 percent complete as to conversion costs.Under Logan's cost accounting system,lost units reduce the number of units over which total cost can be spread.Using the average cost method,what were the equivalent units for March for conversion costs?

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Definitions:

Income Before Taxes

Earnings of a company before income tax expense is deducted, indicating its profitability from operations.

Operating Expenses

Costs associated with running a company’s day-to-day operations, such as salaries, rent, and utilities, but not including cost of goods sold.

Cost of Goods Sold

The immediate financial outlays associated with the creation of a company's sold products.

Net Sales

The amount of a company's gross sales minus returns, allowances, and discounts.