I\'m having a discussion with another person regarding this question. I have the answer of 29,400 for 1, but the other person is saying its 25,000 for 1 and 24,400 for 2. Can you explain the calcuations if possible? Thanks! Beginning WIP inventory       5000 units Started               25,000 units Completed           28,000 units Ending inventory       2,000 units The units in ending inventory are 100% complete for direct material, 70% complete for labor and overhead. 1.   Calculate the E.U for direct material cost. 2.   Calculate the E.U for conversion cost. Solution Hi, Please find the detailed answer as follows: E.U . for DIrect Material Cost = 28000*100% + 2000*100% = 30000 units E.U . for Conversion Cost =28000*100% + 2000*70% = 29400 units Thanks. .

1. I'm having a discussion with another person regarding this question. I have the answer of 29,400
for 1, but the other person is saying its 25,000 for 1 and 24,400 for 2. Can you explain the
calcuations if possible? Thanks!
Beginning WIP inventory 5000 units
Started 25,000 units
Completed 28,000 units
Ending inventory 2,000 units
The units in ending inventory are 100% complete for direct material, 70% complete for labor and
overhead.
1. Calculate the E.U for direct material cost.
2. Calculate the E.U for conversion cost.
Solution
Hi,
Please find the detailed answer as follows:
E.U . for DIrect Material Cost = 28000*100% + 2000*100% = 30000 units
E.U . for Conversion Cost =28000*100% + 2000*70% = 29400 units
Thanks.