Macklin Products uses process costing.Ending Work in Process inventory consists of 2,600 units that are 100% complete with respect to materials and 30% complete with respect to conversion costs.What are the equivalent units for materials and for conversion costs, respectively, in the ending Work in Process inventory of the Mixing Department?
A)2,600 and 780 units
B)780 and 2,600 units
C)780 and 780 units
D)2,600 and 2,600 units

Question

Quizplus · Accepted Answer

The equivalent units for materials is the same as the number of units in the ending Work in Process inventory that are 100% complete with respect to materials, which is 2,600 units. The equivalent units for conversion costs is calculated as the number of units in the ending Work in Process inventory that are partially complete with respect to conversion costs multiplied by the percentage of completion, which is 2,600 units x 30% = 780 units. Therefore, the correct answer is A) 2,600 and 780 units.

Macklin Products Uses Process Costing