During the month of May,Scott Clothing transferred 140,000 shirts to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 shirts in process at May 31 and the shirts were 75 percent complete with respect to conversion costs.All direct materials are added at the beginning of the production process.The equivalent units for conversion costs for May are ________.

Question

Quizplus · Accepted Answer

Equivalent units for conversion costs are calculated by adding the equivalent units of completed units and equivalent units of units in process. 
Equivalent units of completed units = 140,000 shirts 
Equivalent units of units in process = 40,000 shirts × 75% = 30,000 shirts 
Total equivalent units = 140,000 + 30,000 = 170,000 shirts.

During the Month of May,Scott Clothing Transferred 140,000 Shirts to Finished