In the month of June, a department had 20,000 units in beginning work in process that were 70% complete.During June, 80,000 units were transferred into production from another department.At the end of June there were 10,000 units in ending work in process that were 40% complete.Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process.
-The equivalent units of production for conversion costs for June were

Question

Quizplus · Accepted Answer

Equivalent units of production for conversion costs = Units transferred in from other departments + Beginning work in process units x % complete + Ending work in process units x % complete= 80,000 + (20,000 x 70%) + (10,000 x 40%)= 80,000 + 14,000 + 4,000= 94,000 equivalent units

In the Month of June, a Department Had 20,000 Units