If there are 500 units in Department 1 Work in process account at the end of the month, and they are 80% complete with respect to conversion costs, they would be accounted for as 400 equivalent units with respect to conversion costs.

Question

Quizplus · Accepted Answer

To calculate equivalent units of production for conversion costs, units that are partially completed are multiplied by the percentage of completion for conversion costs. In this case, 80% of 500 units would be 400 equivalent units.

If There Are 500 Units in Department 1 Work in Process