Question

The following information is provided by Easy Street, Inc WIP Inventory, January 1 Units started Units completed and transferred out WIP Inventory, December 31 Direct materials Direct labor Manufacturing Overhead 0 units 12,900 8,100 4,800 $28,200 $18,000 $7,500 The units in ending WIP Inventory were 75% complete for materials and 43% complete for conversion costs At the end of the year, what are the equivalent units for conversion costs? ○ A. 8,100 ○ B. 5,547 OC. 2,064 OD. 10,164

Answer 1

D. 10,164

Step-by-step explanation:

Physical units:

January 1st units: 0

Started Units: 12,900

Transferred-out 8,100

Ending units: 4,800

Equivalent units conversion cost:

started units - incomplete percentage of WIP

12,900 - 4,800 x ( 1 - 43%) =

12,900 - 2,736 = 10,164