Department M had 2,000 units 40% completed in process at the beginning of June, 12,000 units completed during June, and 1,200 units 25% completed at the end of June. The number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories is
A)11,500 units
B)11,200 units
C)15,200 units
D)10,000 units

Question

Quizplus · Accepted Answer

Equivalent units of production for conversion costs = Units completed and transferred out + (Units in ending work in process x % completed)= 12,000 + (1,200 x 25%)= 12,000 + 300= 11,500 units

Department M Had 2,000 Units 40% Completed in Process at the Beginning