Assuming that there was no beginning work in process inventory and the ending work in process inventory is 50 per cent complete as to conversion costs,the number of equivalent units as to conversion costs would be:
A) The same as the units completed.
B) The same as the units placed in process.
C) Less than the units completed.
D) Less than the units placed in process.

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs only include the units that have been partially or fully completed during the period. Since the ending work in process inventory is only 50% complete, only half of those units can be included as equivalent units for conversion costs. Therefore, the equivalent units as to conversion costs will be less than the units placed in process.

Assuming That There Was No Beginning Work in Process Inventory