Bonita and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 11400 units of ending work in process at 70% completion and 31500 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period

Question

Isabell Weber

Business

3 October, 22:31

Bonita and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 11400 units of ending work in process at 70% completion and 31500 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period

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Answers (1)

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Cindy Robbins · Answer 1

The equivalent units for conversion cost are 28080.

Explanation:

Firstly, we need to find our how much units are being sold

Units Sold = physical units - ending units

Units sold = 31500 - 11400 = 20100

Then we need to add units sold with percentage completion of ending units in order to find out equivalent units for conversion cost

Formula:

Equivalent units for conv. cost = units sold + (%completion of ending units)

Equivalent units for conv. cost = 20100 + (70% * 11400)

Equivalent units for conv. cost = 20100 + 7980

Equivalent units for conv. cost = 28080