If equivalent units are 6,000 for conversion costs and units transferred out equals 4,000, what stage of completion should the ending Work in Process be for the 8,000 units remaining?
A)75%
B)25%
C)10%
D)20%

Question

Quizplus · Accepted Answer

The ending Work in Process for the 8,000 units remaining should be at 25% completion for conversion costs. This is because there are 6,000 equivalent units for conversion costs, and 4,000 units were transferred out, leaving 2,000 equivalent units for the conversion costs of the ending Work in Process. Since there are 8,000 units remaining, and 2,000 of these are equivalent units for conversion costs, this means the remaining units are 25% complete (2,000 equivalent units / 8,000 units remaining = 0.25 or 25%).

If Equivalent Units Are 6,000 for Conversion Costs and Units