Assuming that there was no beginning work in process inventory and the ending work in process inventory is 50 per cent complete as to conversion costs, the number of equivalent units as to conversion costs would be
A) the same as the units completed.
B) the same as the units placed in process.
C) less than the units completed.
D) less than the units placed in process.

Question

Quizplus · Accepted Answer

The equivalent units as to conversion costs should be calculated for the units that were started and completed during the period, as well as for the units that are partially completed at the end of the period (ending WIP). Since the ending WIP is only 50% complete as to conversion costs, its equivalent units will be less than the units placed in process. Therefore, the correct answer is D.

Assuming That There Was No Beginning Work in Process Inventory