During a period, 38,200 units were completed and 5,300 units were in ending WIP inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the completed units to the equivalent units in ending WIP. Completed units are 38,200. For ending WIP, 5,300 units are 50% complete for conversion costs, so equivalent units for ending WIP are 5,300 * 0.5 = 2,650. Therefore, the total equivalent units for conversion costs are 38,200 + 2,650 = 40,850.

During a Period, 38,200 Units Were Completed and 5,300 Units