The Molding Department of Kennett Company has the following production data: beginning work in process 25,000 units (60% complete), started into production 425,000 units, completed and transferred out 400,000 units, and ending work in process 50,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:
A) 450,000.
B) 405,000.
C) 420,000.
D) 400,000.

Question

Quizplus · Accepted Answer

Equivalent units for conversion costs are calculated by adding together the equivalent units for all units completed and the equivalent units for ending work in process.

Equivalent units for completed units: 
400,000

Equivalent units for ending work in process: 
50,000 x 40% = 20,000

Total equivalent units for conversion costs: 
400,000 + 20,000 = 420,000

Therefore, the correct answer is C) 420,000.

The Molding Department of Kennett Company Has the Following Production