There are 35,000 units started. 24,600 were completed and transferred out and the 11,400 remaining units were 55% complete for conversion costs. The total number of equivalent units for conversion costs is
A)24,600.
B)30,870.
C)19,800.
D)6270.

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs include both the completed and transferred out units and the partially completed units. The completed and transferred out units are already 100% complete for conversion costs. The partially completed 11,400 units are 55% complete, so they represent 11,400 x 55% = 6,270 equivalent units for conversion costs. Therefore, the total number of equivalent units for conversion costs is 24,600 + 6,270 = 30,870. Choice (B) is the correct answer.

There Are 35,000 Units Started