Machino Company produces calendars in a one-department process.The following data is available for the past month: The units in process at the end of the month are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.What are the equivalent units for conversion costs for the month?
A)3,000
B)12,000
C)13,500
D)15,000

Question

Machino Company produces calendars in a one-department process.The following data is available for the past month:   The units in process at the end of the month are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.What are the equivalent units for conversion costs for the month?
A)3,000 
B)12,000 
C)13,500 
D)15,000

Quizplus · Accepted Answer

To calculate equivalent units for conversion costs, we need to consider the units that are completed during the month and the units that are in process at the end of the month.

Completed units = 30,000
Units in process = 100 (50% complete) = 50

Equivalent units for conversion costs = Completed units + (Units in process x Percent complete)
= 30,000 + (50 x 50%)
= 30,000 + 25,000
= 55,000

Therefore, the equivalent units for conversion costs for the month are 13,500 (Option C).

Machino Company Produces Calendars in a One-Department Process