Solution 1:
Number of units in ending inventory in the department = Units in beginning WIP + Units started - Units completed
= 6000 + 42000 - 40000 = 8000 units
Solution 2:
Let ending inventory completed with respect to conversion = X%
Equivalent units of converison cost = 40000
(6000*1/3) + 34000 + 8000*X% = 40000
2000 + 34,000 + 8000*X% = 40000
8000 * X% = 40000
X = 50%
Therefore percent completion of the units calculated in #1 above, with respect to conversion costs. = 50%
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