Respuesta :
Answer:
All options are incorrect.
Correct answer is 39,900
Explanation:
As for the provided information:
We can firstly compute the goods added new during the month,
But as there is first in first out the opening will be converted first and then the added ones, accordingly the total converted units into finished goods will comprise the units added and opening work in process,
Thus, goods newly added shall not be computed.
Therefore, goods 100% complete = 38,500 units
Further closing units are 40% complete, as not provided specifically in terms of overheads and raw material.
Thus, assumed material also 40% complete
Therefore, in closing equivalent completed units for direct material = 3,500 [tex]\times[/tex] 40% = 1,400 units
Therefore, total equivalent units = 38,500 + 1,400 = 39,900
Although if assumed that goods are 100% complete with respect to materials, then total equivalent units = 38,500 + 3,500 = 42,000
Therefore, all the options provided are incorrect.
Correct answer is 39,900
