A disinfectant manufacturer offers the following information: $\begin{array}{|l|r|}
\hline \text { WIP inventory, January 1 } & 0 \text { units } \
\hline \text { Units started } & 21,500 \text { units } \
\hline \begin{array}{l}
\text { Units completed and } \
\text { transferred out }
\end{array} & 14,500 \text { units } \
\hline \text { WIP inventory, December 31 } & 7,000 \text { units } \
\hline \text { Direct materials } & \$ 252,500 \
\hline \text { Direct labor } & \$ 592,500 \
\hline \text { Manufacturing overhead } & \$ 375,100 \
\hline
\end{array}$ The units in ending WIP inventory were 60% complete for materials and 40% complete for conversion costs.
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On December 31,what are the total equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

To calculate the total equivalent units for conversion costs, we need to take the units completed during the period and the equivalent units in ending WIP inventory.
Units completed = 11,000
Equivalent units in ending WIP inventory for conversion costs = 6,000 x 40% = 2,400
Total equivalent units for conversion costs = units completed + equivalent units in ending WIP inventory = 11,000 + 2,400 = 13,400
Therefore, the correct answer is option C (17,300).

A Disinfectant Manufacturer Offers the Following Information The Units in Ending WIP Inventory Were 60% Complete for WIP