The Jones Corporation uses a process system. During the current period, 2,500 units were started and 1,100 units were completed and transferred out. Ending units were 60% complete for materials and 45% complete for conversion costs. Direct materials costs added were $35,405 and conversion costs added were $32,870. There was no beginning WIP inventory and conversion costs are added evenly throughout the process. At the end of the period, what are the total equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

- Units completed and transferred out = 1,100
- Ending units = 2,500*(100%-60%) = 1,000 units
- Total units accounted for = 1,100 + 1,000 = 2,100 units
- Equivalent units for materials = 1,100 units (since completed units are always 100% complete)
- Equivalent units for conversion costs = (1,000 * 45%) + (2,100 * 55%) = 450 + 1,155 = 1,605 units
- Therefore, the total equivalent units for conversion costs is 1,730 (since conversion costs are added evenly throughout the process)

The Jones Corporation Uses a Process System