Question

Equivalent units for materials total 40,000. There were 32,000 units completed and transferred out. Equivalent units for conversion costs equal 36,000. How much are the physical units for conversion costs if ending work in process is 50% complete

Answer 1

Answer: 40000

Step-by-step explanation:

The physical units for conversion cost will be calculated as follows:

= Units completed and transferred out + (Equivalent units for conversion costs - Units completed and transferred out /Completion percentage)

= 32000 + (36000 - 32000 / 50% )

= 32000 + (4000/50%)

= 32000 + 8000

= 40000