Answer:
Option D is correct
Equivalent units
Material cost = 122, 500
Conversion cost = 112,000
Explanation:
Equivalent units = Units × degree of completion(%)
Material cost
Item Unit Equivalent units
transferred out 100,000 100,000× 100% = 100,000
Closing inventory 30,000 30,000 75% = 22,500
Equivalent unit 122,500
Conversion cost
Item Unit Equivalent units
transferred out 100,000 100,000× 100% = 100,000
Closing inventory 30,000 30,000 × 40% = 12,000
Equivalent unit 112,000
Equivalent units
Material cost = 122, 500
Conversion cost = 112,000