Assume there were 6,000 units in beginning work in process, 60% complete. 20,000 units were completed during the month. Ending work in process is 40% complete, which is equivalent to 3,200 units for conversion costs. Materials are added at the beginning of the process. The standard cost method is used.
The number of equivalent units of conversion costs is:
A) 23,200
B) 17,680
C) 19,600
D) 21,280

Question

Quizplus · Accepted Answer

To calculate the equivalent units of conversion costs, we need to take into account the units that were started and completed during the month, as well as the units that are still in process at the end of the month.

Units started and completed: 20,000
Ending work in process: 3,200 x 40% = 1,280

To calculate the equivalent units of conversion costs, we need to add together the equivalent units from the units started and completed and the ending work in process.

Equivalent units from units started and completed: 20,000
Equivalent units from ending work in process: 1,280 x 100% = 1,280

Total equivalent units of conversion costs: 20,000 + 1,280 = 21,280

Therefore, the correct answer is option D.

Assume There Were 6,000 Units in Beginning Work in Process