Department A had no work in process at the beginning of the period, 16,000 units were started during the period, 2,000 units were 40% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (assuming the company uses FIFO) : Direct materials $100,000 Direct labor 122,300 Factory overhead 45,200 Assuming that all direct materials are placed in process at the beginning of production, what are the total equivalent units for conversion costs?

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Business

Adam Burnett

22 March, 17:22

Department A had no work in process at the beginning of the period, 16,000 units were started during the period, 2,000 units were 40% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (assuming the company uses FIFO) : Direct materials $100,000 Direct labor 122,300 Factory overhead 45,200 Assuming that all direct materials are placed in process at the beginning of production, what are the total equivalent units for conversion costs?

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Answers (1)

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Kaylyn Gill · Answer 1

14,800 units

Explanation:

The computation of the total equivalent units for conversion cost is shown below:

= Units completed and transferred out * completion percentage + ending work in process units * completion percentage

where,

Units completed and transferred out is

= 16,000 units - 2,000 units

= 14,000 units

So, the total equivalent units is

= 14,000 units * 100% + 2,000 units * 40%

= 14,000 units + 800 units

= 14,800 units