Question

If 4,500 units of Ending Work in Process Inventory are 70% complete as to Conversion Costs, how many equivalent units of Conversion Costs must be incurred to complete these units during the next period?

Answer 1

To complete 4,500 units that are 70% complete as to Conversion Costs, you would need 1,350 equivalent units of Conversion Costs in the next period.

Step-by-step explanation:

If 4,500 units of Ending Work in Process Inventory are 70% complete as to Conversion Costs, to find how many equivalent units of Conversion Costs are required to complete these units during the next period, you need to calculate the remaining 30% of the conversion costs that have not yet been incurred.

So, the equivalent units for the remaining conversion costs will be 30% of 4,500 units, which is:

4,500 units x 0.30 = 1,350 equivalent units of Conversion Costs

Therefore, you will need 1,350 equivalent units of Conversion Costs to complete these units in the next period.