Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to Department X from Department W during the period; and 1,800 units were one-half completed at the end of the period. Assume the completion ratios apply to direct materials and conversion costs.
What is the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W? Assume the company uses FIFO.
A) 16,100 units
B) 13,600 units
C) 15,000 units
D) 18,500 units

Question

Department W had 2,400 units, one-third completed at the beginning of the period; 16,000 units were transferred to Department X from Department W during the period; and 1,800 units were one-half completed at the end of the period.  Assume the completion ratios apply to direct materials and conversion costs.
What is the equivalent units of production used to compute unit conversion cost on the cost of production report for Department W? Assume the company uses FIFO.
A) 16,100 units
B) 13,600 units
C) 15,000 units
D) 18,500 units

Quizplus · Accepted Answer

Equivalent units of production = Units completed and transferred out + Equivalent units in ending work in processUnits completed and transferred out = 16,000 unitsEquivalent units in ending work in process = 1,800 units x 1/2 = 900 unitsEquivalent units of production = 16,000 units + 900 units = 16,900 units

Department W Had 2,400 Units, One-Third Completed at the Beginning