Wingfield, Inc.uses process costing.Ending Work in Process inventory in the Assembly Department consists of 700 units that are 50% complete with respect to conversion costs.The beginning inventory consisted of 2,000 units.During the month, 6,000 units were started.How many equivalent units will be used in the cost per equivalent unit calculation for conversion costs in the Assembly Department?
A)7,650 units
B)7,300 units
C)8,000 units
D)6,700 units

Question

Quizplus · Accepted Answer

Equivalent units for conversion costs = Units completed + Ending Work in Process inventory * % completion for conversion costs. Units completed = Units started + Beginning inventory - Ending inventory = 6,000 + 2,000 - 700 = 7,300. Equivalent units = 7,300 + (700 * 50%) = 7,300 + 350 = 7,650 units.