Question

The assembly department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. an additional 90,000 units were transferred in from the prior department during the month to begin processing in the assembly department. during the month 87,000 units were completed in the assembly department and transferred to the next processing department. there were 12,000 units in the ending work in process inventory of the assembly department that were 20% complete with respect to conversion costs. what were the equivalent units for conversion costs in the assembly department for the month?

Answer 1

Assuming the department follows FIFO method of calculating Equivalent units we shall proceed with the calculations as below:

Beginning Balance WIP(30%) (9000 Units) 2700 Units

Units Processed 87000 Units

Ending Inventory (20% ) (12000 Units) 2400 Units

Total Equivalent Units 92100 Units