March 2010 was Flinch Corp.'s first month in business. During the month, Flinch put enough material into process to complete 7,600 hats. At the end of March, Flinch had 2,000 hats still in process that were 30% complete as to conversion. What are the equivalent units of production for material and conversion for March 2010?
Material &emsp; Conversion

Question

Quizplus · Accepted Answer

For material, all 7,600 hats would have had the material added at the beginning of the process, so the equivalent units for material are 7,600. For conversion, the 2,000 hats that were still in process at 30% completion contribute 600 equivalent units (2,000 hats * 30% = 600). Adding these to the 5,600 hats that were completed (7,600 total hats - 2,000 in process = 5,600 completed), gives a total of 6,200 equivalent units for conversion.

March 2010 Was Flinch Corp