Yummy Tummy Desserts has 3,200 quarts of ice cream in WIP inventory, with all materials already added. The ice cream is 75% through the process. Assuming all conversion costs are added evenly throughout the process, what are the equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs only count the units that are partially completed in the process. Since the ice cream is 75% through the process, only 2,400 (3,200 x 0.75) units are included in the equivalent units for conversion costs. Therefore, the correct answer is C. Choices A, B, and D are incorrect.

Yummy Tummy Desserts Has 3,200 Quarts of Ice Cream in WIP