Use the information below to answer the following questions:
The following information is provided by Alexandria Corporation:

The units in ending WIP Inventory were 75% complete for materials and 50% complete for conversion costs.
-At Alexandria Corporation, what are the equivalent units for conversion costs?

Question

Use the information below to answer the following questions:
The following information is provided by Alexandria Corporation:
 
 The units in ending WIP Inventory were 75% complete for materials and 50% complete for conversion costs.
-At Alexandria Corporation, what are the equivalent units for conversion costs?

Quizplus · Accepted Answer

Equivalent units for conversion costs are calculated based on the work done during the period, taking into account both completed units and the percentage of completion for units still in process. The specific number (11,500) suggests that it accounts for all work done, including both fully completed units and the conversion costs applied to those units still in process, to reach this total.

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