The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods: $$\begin{array} { | l cl| }
\hline & \text { Units } \
\text { Beginning work in process } & 26,000& \text { (70 percent complete for conversion costs) } \
\text { Units started } & 180,000 \
\text { Units transferred out } & 191,000 \
\text { Ending work in process } & 15,000 &\text { (60 percent complete for conversion costs) } \
\hline
\end{array}$$

Equivalent units for conversion costs are

Question

The Taylor Company uses a process costing system.Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process.The company uses the FIFO costing method.The following data are available for one of its accounting periods: $$\begin{array} { | l cl| } 
\hline & \text { Units } \
\text { Beginning work in process } & 26,000& \text { (70 percent complete for conversion costs) } \
\text { Units started } & 180,000 \
\text { Units transferred out } & 191,000 \
\text { Ending work in process } & 15,000 &\text { (60 percent complete for conversion costs) } \
\hline
\end{array}$$
 
Equivalent units for conversion costs are

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated using the FIFO method as follows:
- Units completed and transferred out: 185,000
- Equivalent units for ending work in process inventory: 16,800 (20,000 x 0.84)
- Equivalent units for conversion costs: 181,800 (185,000 + 16,800 - 20,000)

The Taylor Company Uses a Process Costing System Equivalent Units for Conversion Costs Are A) 207,800

The Taylor Company Uses a Process Costing System Equivalent Units for Conversion Costs Are
A) 207,800