Question

Here is the capital structure of Microsoft. What part of the $117.67 share price is represented by cash

Answer 1

Answer:

Equivalent units for conversion costs are 6,925 units

Explanation:

Note : I have attached the full question as an image below

Equivalent units are physical units expressed as a percentage of total work completed on them

Equivalent units for conversion costs

Units Completed and Transferred (6,100 × 100%)   6,100

Units in Closing Work in Process (1,100 × 75%)          825

Equivalent units for conversion costs                      6,925

Equivalent units for material costs

Units Completed and Transferred (6,100 × 100%)   6,100

Units in Closing Work in Process (1,100 × 85%)          935

Equivalent units for material costs                      7,035