Scott Clothing had 40,000 shirts in process at May 31 75% convert?ed).All direct materials are added at the beginning of the production process.During the month 140,000 shirts were transferred to Finished Goods Inventory.There was no beginning inventory.The equivalent units for conversion costs for May are _____shirts.

Question

Quizplus · Accepted Answer

Equivalent units for conversion costs = Units completed and transferred + (Ending WIP inventory * Percentage completion of conversion costs) = 140,000 + (40,000 * 75%) = 140,000 + 30,000 = 170,000 shirts.

Scott Clothing Had 40,000 Shirts in Process at May 31