The Wisco Company has a process cost system.All materials are placed in process when the process is first begun.At the beginning of September,there were no units of product in process.During September 50,000 units were started; 5,000 of these were still in process at the end of September and were 3/5 finished.The equivalent units for the conversion costs in September were

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Since 50,000 units were started and 5,000 were still in process at the end of September, a total of 55,000 units were accounted for. To calculate the equivalent units for conversion costs, we need to add the number of units that were completed (50,000 - 5,000 = 45,000) to the number of units in process that are partially completed (5,000 x 3/5 = 3,000). Therefore, the equivalent units for conversion costs in September are 45,000 + 3,000 = 48,000.

The Wisco Company Has a Process Cost System