During a period,40,000 units were completed and 3,500 units were in ending WIP inventory.Ending WIP was 80% complete for direct materials and 30% complete for conversion costs.What are the equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the completed units to the equivalent units in ending WIP. The completed units are 40,000. The ending WIP units are 3,500, and they are 30% complete for conversion costs, so the equivalent units for conversion costs in ending WIP are 3,500 * 0.30 = 1,050. Therefore, the total equivalent units for conversion costs are 40,000 + 1,050 = 41,050.

During a Period,40,000 Units Were Completed and 3,500 Units Were