British Bulldog Company produces calendars in a one- department process. The following information is available: $\begin{array}{ll}
\text { Direct materials added } & \$ 30,000 \
\text { Direct labor } & \$ 20,700 \
\text { Factory overhead } & \$ 10,350\
\text { Work-in- process inventory, b eginning }&-0-\
\text { Units started } & 15,000 \
\text { Units completed and transferred out } & 12,000 \
\text { Work-in-process inventory, ending } & 3,000
\end{array}$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs. The equivalent units for conversion costs are:

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated as the units completed and transferred out (12,000) plus the equivalent units in ending work-in-process inventory (3,000 units * 60% complete = 1,800). Therefore, the total equivalent units for conversion costs are 12,000 + 1,800 = 13,800.

British Bulldog Company Produces Calendars in a One- Department Process