Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period. During the period, 30,000 units of direct materials were added, 32,000 units were completed, and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was
A) 32,450
B) 29,450
C) 31,950
D) 26,000

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by considering the work done during the period. This includes the completion of the beginning inventory (5,000 units x 25% remaining work), the units started and completed during the period (32,000 - 5,000), and the work done on the ending inventory (3,000 units x 40%). This totals to 29,450 equivalent units.

Department R Had 5,000 Units in Work in Process That