During a period, 43,200 units were completed and 5000 units were in ending WIP Inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs?
A)24,100
B)48,200
C)46,700
D)45,700

Question

Quizplus · Accepted Answer

Equivalent Units for Conversion Costs = Units in ending WIP * Percentage completion of conversion costs
= 5000 * 50% = 2500
Equivalent Units for Completed Units = Number of units completed in the period * Percentage completion of conversion costs
= 43200 * 100% = 43200
Total Equivalent Units for Conversion Costs = Equivalent Units for Conversion Costs in Ending WIP + Equivalent Units for Conversion Costs in Completed Units
= 2500 + 43200 = 45,700 units. Therefore, the correct answer is option D.

During a Period, 43,200 Units Were Completed and 5000 Units