The equivalent units for conversion costs for the Assembly Department during the month were:
A)36,800 units
B)38,000 units
C)40,800 units
D)42,800 units

Question

Quizplus · Accepted Answer

Conversion costs include both direct labor and manufacturing overhead costs. Since the question does not provide information about the proportion of each cost, we can assume that the total cost of both categories is the same. The equivalent units for direct labor were 40,000 and for manufacturing overhead were 40,800. Therefore, the equivalent units for conversion costs were 40,800 units.

The Equivalent Units for Conversion Costs for the Assembly Department