Question

Equivalent Units of Conversion Costs

The Filling Department of Eve Cosmetics Company had 3,500 ounces in beginning work in process inventory (10% complete). During the period, 44,200 ounces were completed. The ending work in process inventory was 3,100 ounces (90% complete).

What are the total equivalent units for conversion costs?

If required, round to the nearest unit.

____ units

Answer 1

Solution:

Particulars	Total whole units	% conversion completed in period	Equivalent units for Conversion
Inventory in process, beginning of period	3,500	90%	3,150(3,500 × 90%)
Started and completed during the period	40,700	100%	40,700
Transferred out of Filling (Completed)	44,200		43,850
Inventory in process, end of period	3,100	90 %	2,790(3,100 × 90%)
Total units to be assigned costs	47,300		46,640

* 40,700 = 44,200 units - 3,500 units