Cohen Manufacturing is trying to determine the equivalent units for conversion costs with 2,000 units of ending Work in Process at 80% completion and 14,000 physical units that are 100% complete as to materials.There are no beginning units in the department.Materials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period.What are the equivalent units for conversion costs for the current period if the weighted-average method is used?
A)16,000
B)15,600
C)1,600
D)13,600

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the full units that are 100% complete (14,000 units) to the equivalent units for the ending Work in Process based on their completion percentage for conversion costs (2,000 units * 80% = 1,600 units). Therefore, 14,000 + 1,600 = 15,600 equivalent units for conversion costs.

Cohen Manufacturing Is Trying to Determine the Equivalent Units for Conversion