Question

Equivalent Units of Conversion Costs The Rolling Department of Kraus Steel Company had 7,011 tons in beginning work in process inventory (50% complete) on October 1. During October, 77,900 tons were completed. The ending work in process inventory on October 31 was 4,674 tons (80% complete). What are the total equivalent units for conversion costs? Round to the nearest whole unit. units =

Answer 1

Total equivalent units for conversion cost	=	78,134	units
Workings:
Equivalent Units of production - FIFO method	Units	% Conversion	EUP - Conversion
	(i)	(ii)	(i) X (ii)
Units in Beginning Inventory	7,011	50%	3,506
Units started and completed (77900 - 7011)	70,889	100%	70,889
Units in Ending Inventory	4,674	80%	3,739
Total EUP	82,574		78,134