Equivalent units for materials total 9,000.There were 7,000 units completed and transferred out.Equivalent units for conversion costs equal 8,000.How much are the physical units for conversion costs if ending Work in Process is 25% complete?
A)3,750
B)11,000
C)8,000
D)1,750

Question

Quizplus · Accepted Answer

Physical units for conversion costs can be calculated by adding the units completed and transferred out to the units in ending Work in Process, adjusted for their percentage of completion. Here, 7,000 units were completed and transferred out. The ending Work in Process, which is 25% complete, refers to the conversion costs, not the physical units directly. However, since the equivalent units for conversion costs are 8,000, and we know that 7,000 units were completed and transferred out, we can infer that the remaining 1,000 equivalent units for conversion costs come from the Work in Process inventory. To find the physical units that correspond to these 1,000 equivalent units at 25% completion, we calculate 1,000 / 0.25 = 4,000. Adding these 4,000 units in process to the 7,000 units completed gives us a total of 11,000 physical units for conversion costs.

Equivalent Units for Materials Total 9,000