Durante Company produces plastic cups in a one-department process. The following data is available for the past month: Work-in-process inventory, beginning 0 Units started 60,000 Units completed and transferred 48,000 Work-in-process inventory, ending 12,000 The units in process at the end of the month are 100 percent complete with respect to materials and 50 percent complete with respect to conversion costs. What are the equivalent units for conversion costs for the mo

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Business

Lukas Kirk

30 May, 10:08

Durante Company produces plastic cups in a one-department process. The following data is available for the past month: Work-in-process inventory, beginning 0 Units started 60,000 Units completed and transferred 48,000 Work-in-process inventory, ending 12,000 The units in process at the end of the month are 100 percent complete with respect to materials and 50 percent complete with respect to conversion costs. What are the equivalent units for conversion costs for the mo

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Kristina Keith · Answer 1

54,000 units

Explanation:

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

= Completed and transferred units * completion percentage + Ending work in process * completion percentage

= 48,000 units * 100% + 12,000 units * 50%

= 48,000 units + 6,000 units

= 54,000 units

We simply added the completed & transferred units and the ending work in process units by considering the completion percentage