Use the following data of Daylight Incorporation,a company using a process costing system,to answer the questions below.
-The company uses average process costing method.
Equivalent units for conversion costs of Daylight during the month totaled

Question

Use the following data of Daylight Incorporation,a company using a process costing system,to answer the questions below. 
-The company uses average process costing method.
Equivalent units for conversion costs of Daylight during the month totaled

Quizplus · Accepted Answer

According to the data given in the table, the equivalent units for conversion costs during the month were as follows:

Units completed and transferred out = 51,000
Equivalent units in ending work in process inventory = 3,500
Total equivalent units = 54,500

Now, to calculate the equivalent units for conversion costs, we need to add the equivalent units for conversion costs in both the units completed and transferred out and the ending work in process inventory.

Equivalent units for conversion costs in units completed and transferred out = 51,000
Equivalent units for conversion costs in ending work in process inventory = (20% x 17,500) = 3,500

Total equivalent units for conversion costs = 51,000 + 3,500 = 54,500

Therefore, the equivalent units for conversion costs of Daylight during the month totaled 8,690 (Option C).

Use the Following Data of Daylight Incorporation,a Company Using a Process