The following information is provided by Dart Manufacturing: $$\begin{array} { | l | r | }
\hline \text { WIP inventory, January 1 } & \text { 0 units } \
\hline \text { Units started } & 5,000 \
\hline \begin{array} { l }
\text { Units completed and } \
\text { transferred out }
\end{array} & 2,000 \
\hline \text { WIP inventory, December 31 } & 3,000 \
\hline \text { Direct materials } & \$ 12,500 \
\hline \text { Direct labor } & \$ 16,300 \
\hline \text { Manufacturing overhead } & \$ 8,700 \
\hline
\end{array}$$ The units in ending WIP inventory were 90% complete for materials and 60% complete for conversion costs.
-
At the end of the year,what are the equivalent units for conversion costs?
A)3,000
B)3,800
C)2,000
D)1,800

Question

The following information is provided by Dart Manufacturing: $$\begin{array} { | l | r | } 
\hline \text { WIP inventory, January 1 } & \text { 0 units } \
\hline \text { Units started } & 5,000 \
\hline \begin{array} { l } 
\text { Units completed and } \
\text { transferred out }
\end{array} & 2,000 \
\hline \text { WIP inventory, December 31 } & 3,000 \
\hline \text { Direct materials } & \$ 12,500 \
\hline \text { Direct labor } & \$ 16,300 \
\hline \text { Manufacturing overhead } & \$ 8,700 \
\hline
\end{array}$$ The units in ending WIP inventory were 90% complete for materials and 60% complete for conversion costs.
-
At the end of the year,what are the equivalent units for conversion costs?
A)3,000
B)3,800
C)2,000
D)1,800

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the units completed and transferred out (2,000) to the equivalent units in ending WIP inventory for conversion costs (3,000 units * 60% = 1,800). Therefore, the total equivalent units for conversion costs are 2,000 + 1,800 = 3,800.

The Following Information Is Provided by Dart Manufacturing The Units in Ending WIP Inventory Were 90% Complete for |