Flimsy Company produces plastic cups in a one-department process.The following information is available:
Work-in-process inventory, beginning $ \quad-0 $ -
Units started $ \quad 60,000 $
Units completed and transferred out $ \quad 48,000 $
Work-in-process inventory, ending $ \quad 12,000 $ The units still in process are 100% complete with respect to direct materials and 50% complete with respect to conversion costs.The equivalent units for conversion costs are _____.

Question

Flimsy Company produces plastic cups in a one-department process.The following information is available: 
Work-in-process inventory, beginning $ \quad-0 $ -
Units started $ \quad 60,000 $
Units completed and transferred out $ \quad 48,000 $
Work-in-process inventory, ending $ \quad 12,000 $ The units still in process are 100% complete with respect to direct materials and 50% complete with respect to conversion costs.The equivalent units for conversion costs are _____.

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the units completed and transferred out (48,000) to the equivalent units in ending work-in-process inventory for conversion costs (12,000 units * 50% = 6,000). Thus, the equivalent units for conversion costs are 54,000.

Flimsy Company Produces Plastic Cups in a One-Department Process −0 \quad-0 −0

Flimsy Company Produces Plastic Cups in a One-Department Process $\quad-0$