Bueller Company manufactures phones in a two- department process: Assembly and Finishing. Information on the Assembly department follows: $\begin{array}{lr}
\text { Direct materials added } & \$ 336,000 \
\text { Direct labor } & 460,800 \
\text { Factory overhead } & 230,200\\text { Total costs to account for }&\$1,027,200
\end{array}$ There was no beginning inventory, and of the 80,000 units started in production 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process. These units had all materials added but were only 75% complete as far as conversion costs. The equivalent units for conversion costs are:

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the completed units (67,200) to the equivalent units of the ending work in process (12,800 units * 75% = 9,600). Thus, 67,200 + 9,600 = 76,800 equivalent units.

Bueller Company Manufactures Phones in a Two- Department Process: Assembly