Question

During a period, 38,200 units were completed and 5,300 units were in ending WIP Inventory. Ending WIP was 70% complete for direct materials and 50% complete for conversion costs. What are the equivalent units for conversion costs

Answer 1

Answer: 40,850 units

Step-by-step explanation:

38,200 units were already completed.

Of the ending WIP, conversion costs were:

= 50% * 5,300

= 2,650 units

Total Equi. units = 38,200 + 2,650

= 40,850 units