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Finding the equivalent units for materials and conversion.
Bell Computers, Ltd., located in Liverpool, England, assembles a standardized personal computer from parts it purchases from various suppliers. The production process consists of several steps, starting with assembly of the \"mother\" circuit board, which contains the central processing unit. This assembly takes place in the CPU Assembly Department. The company recently hired a new accountant who prepared the following report for the department for May using the weighted-average method:
Quantity Schedule
Units to be accounted for:
Work in process, May 1 (materials 90% complete; conversion 80% compete)
5,000
Started into production
29,000
Total units
34,000
Units to be accounted for as follows:
Trasferred to next department
30
Work in process, May 31 (materials 75% complete; conversion 50% compete)
4,000
Cost Reconciliation
Cost to be accounted for:
Work in process, May 1
£ 13,400
Cost added in the department
87,800
Total cost to be accounted for
£101,200
Cost accounted for as follows:
Work in process, May 31
£ 8,200
93,000
Total cost accounted for
The company\'s management would like some additional information about May\'s operation in the CPU Assembly Department. (The currency in England is the pound, which is denoted by the symbol £.)
What were the equivalent units for May for materials and conversion costs?
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