The Molding Department of Boswell Company has the following production data: beginning work process 30,000 units (60% complete), started into production 510,000 units, completed and transferred out 480,000 units, and ending work in process 60,000 units (40% complete). Assuming conversion costs are incurred uniformly during the process, the equivalent units for conversion costs are:

Question

Quizplus · Accepted Answer

To calculate the equivalent units for conversion costs, we need to consider both the units completed and transferred out and the ending work in process. For the units completed and transferred out, all conversion costs are 100% complete, so we consider them as 480,000 equivalent units. For the ending work in process, they are only 40% complete, so we need to multiply the number of units by this percentage to get the equivalent units.

Equivalent units for ending work in process = 60,000 units x 40% = 24,000 equivalent units

The total equivalent units for conversion costs are the sum of these two:

Total equivalent units = 480,000 + 24,000 = 504,000

Therefore, the correct answer is (C) 504,000.

The Molding Department of Boswell Company Has the Following Production