At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include: What are the total equivalent units for conversion costs?
A)126,700
B)118,300
C)130,900
D)147,700

Question

At Hodgson Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:  What are the total equivalent units for conversion costs?
A)126,700 
B)118,300 
C)130,900 
D)147,700

Quizplus · Accepted Answer

The total equivalent units for conversion costs are calculated as follows:

Units completed and transferred out + (Ending work in process x Percentage completion)

= (100,000 + (20,000 x 30%)) + (6,900 x 60%)
= 130,900

Therefore, the best choice is C.

At Hodgson Corporation, Direct Materials Are Added at the Beginning