Question

Department A had 5,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period; 34,000 units of direct materials were added during the period; 31,000 units were completed during the period; and 2,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:_________.

a. 32,400
b. 34,000
c. 32,400
d. 29,600

Answer 1

The number of equivalent units of production for conversion costs for the period was 29,600 units. The right answer is d

Step-by-step explanation:

In order to calculate the The number of equivalent units of production for conversion costs for the period we would have to calculate the following formula:

number of equivalent units of production=beginning work in progress+completed units+ending work in progress

beginning work in progress=40%*5,000=2,000 units

completed units=31,000 units-5,000 units=26,000 units

ending work in progress=20%*8,000 units=1,600

number of equivalent units of production=2,000 units+26,000 units+1,600

number of equivalent units of production= 29,600 units

The number of equivalent units of production for conversion costs for the period was 29,600 units