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
A)9,500.
B)8,190.
C)8,690.
D)9,000.

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
A)9,500. 
B)8,190. 
C)8,690. 
D)9,000.

Quizplus · Accepted Answer

Equivalent units for conversion costs are calculated based on the work done during the period, which includes both the completion of units that were in process at the beginning of the period and the work done on units started and possibly completed during the period. Without specific data on the number of units, their stage of completion, and the conversion costs, it's impossible to accurately determine the correct number of equivalent units. However, based on the choices provided and assuming choice C is correct, it implies that the calculation for equivalent units for conversion costs resulted in 8,690 units. This would typically involve calculating the percentage of completion for units in process and applying it to the conversion costs.

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