Question

Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 7,700 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 6,700 units that were 60% complete with respect to conversion costs.

Required:
If 15,400 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be _____.

Answer 1

17,812 equivalent units

Step-by-step explanation:

Ending work in process inventory number of partially completed units

= 4020 x 60%

+

15,400 (Number of units transferred to the next processing department during the period) = 17,812

Therefore the total equivalent units of production for conversion cost is 17,812 units.