Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period; 34,000 units of direct materials were added during the period; 31,000 units were completed during the period; and 2,000 units were 80% 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) 29,600
B) 32,000
C) 32,400
D) 34,000

Question

Quizplus · Accepted Answer

The number of equivalent units of production for conversion costs for the period is 29,600. This is calculated as follows:Beginning work in process: 5,000 units x 60% = 3,000 equivalent unitsUnits started and completed during the period: 31,000 units x 100% = 31,000 equivalent unitsEnding work in process: 2,000 units x 80% = 1,600 equivalent unitsTotal equivalent units of production for conversion costs: 3,000 + 31,000 + 1,600 = 29,600 equivalent units

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