Wanda Window Panes Inc. uses a process-costing system for its single product, which is manufactured from Material X. Material X is introduced to the production at the beginning of the manufacturing process whereas conversion activities occur uniformly throughout the process. The company started and completed 40,000 units during the period, and had an ending work-in-process inventory amounting to 8,000 units, 20% complete with respect to conversion activity. Which of the following choices correctly expresses the total equivalent units of production for Material X and conversion activities respectively?

Question

Quizplus · Accepted Answer

To determine the total equivalent units of production for Material X and conversion activities respectively, we need to add the equivalent units for the completed units and the ending work-in-process inventory.

Equivalent units for material X = Units completed + Ending work-in-process inventory
= 40,000 + 8,000 × 20% 
= 40,000 + 1,600 
= 41,600

Equivalent units for conversion activities = Units completed + Ending work-in-process inventory 
= 40,000 + 8,000 × 20% 
= 40,000 + 1,600 
= 41,600

Therefore, the correct choice is (D), 48,000 and 41,600 for Material X and conversion activities respectively.