In a particular department, 5,000 units were started and all but 600 were completed at the end of the period. These 600 were 70% complete for materials and 45% for conversion costs. Costs added were $52,300 for materials and $53,500 for conversion costs. What is the total number of equivalent units for conversion costs assuming that the weighted-average method is used?

Question

Quizplus · Accepted Answer

For conversion costs, the equivalent units are calculated as the sum of the units completed and the equivalent units for the work done on the incomplete units. Here, 4,400 units were completed (5,000 started - 600 not completed), and the equivalent units for the incomplete units are 270 (600 units * 45% completion for conversion costs). Therefore, the total equivalent units for conversion costs are 4,670 (4,400 completed units + 270 equivalent units for incomplete units).

In a Particular Department, 5,000 Units Were Started and All