Triple H Company manufactures potato chips in a two-department process, Cutting and Frying.In the Cutting department, 10,000 pounds were started in production and 8,400 pounds were completed and transferred to the Frying department, while 1,600 pounds were still in process.These pounds were only 80% complete as far as conversion costs.The equivalent units for conversion costs are _____.
A)10,000
B)8,400
C)9,680
D)1,600

Question

Quizplus · Accepted Answer

Equivalent units of conversion costs = Units completed and transferred to the next department + (Units still in process x Percentage completion)
Equivalent units of conversion costs = 8,400 + (1,600 x 80%) = 8,400 + 1,280 = 9,680. Therefore, the answer is C.

Triple H Company Manufactures Potato Chips in a Two-Department Process