During the month of May,Sonny Company transferred 140,000 gadgets to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 gadgets in process at May 31 and the gadgets were 75 percent complete with respect to conversion costs.All direct materials are added at the end of the production process.The equivalent units for conversion costs for May are ________.
A) 140,000
B) 150,000
C) 170,000
D) 180,000

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated as follows:
140,000 completed units + (40,000 units x 75% completion rate) = 170,000 equivalent units for conversion costs. Therefore, the best choice is C.

During the Month of May,Sonny Company Transferred 140,000 Gadgets to Finished