Answer:
The equivalent ending inventory units of Work in Progress is 6,960 units and the Conversion cost assigned to the WIP Inventory is $22,759.2
Step-by-step explanation:
The question is to calculate the conversion cost to assign to the closing Work in Progress (W.I.P) Inventory.
The following formula will be used
Cost of Conversion Assigned = The Work in Progress Equivalent Ending Units x Conversion Cost per unit
= WIP Ending equivalent units = 80% x 8,700 units = 6,960 units
Cost of Conversion = $3.27 x 6,960 units = $22,759.2
Based on these, The equivalent ending inventory units of Work in Progress is 6,960 units and the Conversion cost assigned to the WIP Inventory is $22,759.2