Question

Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company had 5,400 ounces in beginning work in process inventory (70% complete). During the period, 60,000 ounces were completed. The ending work in process inventory was 5,400 ounces (90% complete). What are the total equivalent units for conversion costs

Answer 1

Answer: 60,980‬ ounces

Step-by-step explanation:

EUP for conversion cost = Beginning EUP + Units started and completed + Ending EUP

Beginning WIP inventory was 70% complete. This period will therefore account for 30% of the cost.

= 30% * 5,400

= ‭1,620‬ ounces

During the period, 60,000 ounces were completed. The ounces added was therefore:

= 60,000 - 5,400

= 54,600 ounces

54,600 ounces were started and completed.

Ending EUP is 90% complete:

= 90% * 5,400

= ‭4,860‬ ounces

EUP for conversion costs = 1,620 + 54,600 + 4,860

= ‭60,980‬ ounces