Natural Desserts has 2,500 gallons of paint in WIP inventory,with all materials already added.The paint is 60% through the process.Assuming all conversion costs are added evenly throughout the process,what are the equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

Since the paint is already 60% through the process and assuming all conversion costs are added evenly throughout the process, we can consider that 60% of the conversion costs have already been added to the WIP inventory. Therefore, the equivalent units for conversion costs would be 60% of the 2,500 gallons of paint, which is 1,500 gallons. Thus, option B is the correct answer.

Natural Desserts Has 2,500 Gallons of Paint in WIP Inventory,with