The following unit data were assembled for the heating process of Morgan Processing,Inc.,for the month of August.Direct materials are added at the beginning of the process.Conversion costs are added uniformly over the production process.The company uses the FIFO process costing method. $\begin{array}{lr}
&\text { Units }\
\text { Beginning work in process inventory }\
\text { (30 percent complete) } & 5,000 \
\text { Units started in August } & 44,000 \
\text { Ending work in process } & \
\text { (60 percent complete) } & 4,500
\end{array}$

The number of equivalent units produced with respect to conversion costs is

Question

The following unit data were assembled for the heating process of Morgan Processing,Inc.,for the month of August.Direct materials are added at the beginning of the process.Conversion costs are added uniformly over the production process.The company uses the FIFO process costing method. $\begin{array}{lr}
&\text { Units }\
\text { Beginning work in process inventory }\
\text { (30 percent complete) } & 5,000 \
\text { Units started in August } & 44,000 \
\text { Ending work in process } & \
\text { (60 percent complete) } & 4,500
\end{array}$

The number of equivalent units produced with respect to conversion costs is

Quizplus · Accepted Answer

To calculate the equivalent units produced with respect to conversion costs, we need to add the units completed during the month to the equivalent units in ending WIP inventory. 
Units completed during the month = 45,000
Equivalent units in ending WIP inventory = 700 x 65% = 455
Total equivalent units produced with respect to conversion costs = 45,000 + 455 = 45,455, which is closest to option B (45,700).

The Following Unit Data Were Assembled for the Heating Process