Department A had no work in process at the beginning of the period, 16,000 units were started during the period, 2,000 units were 40% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (assuming the company uses FIFO) : Direct materials $100,000 Direct labor 122,300 Factory overhead 45,200 Assuming that all direct materials are placed in process at the beginning of production, what are the total equivalent units for conversion costs?

Question

Zechariah Burke

Business

7 November, 06:55

Department A had no work in process at the beginning of the period, 16,000 units were started during the period, 2,000 units were 40% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (assuming the company uses FIFO) : Direct materials $100,000 Direct labor 122,300 Factory overhead 45,200 Assuming that all direct materials are placed in process at the beginning of production, what are the total equivalent units for conversion costs?

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Answers (1)

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Janessa Tanner · Answer 1

14,800 units

Explanation:

The computation of the total equivalent units for conversion cost is shown below:

= Units completed and transferred out * completion percentage + ending work in process units * completion percentage

where,

Units completed and transferred out is

= 16,000 units - 2,000 units

= 14,000 units

So, the total equivalent units is

= 14,000 units * 100% + 2,000 units * 40%

= 14,000 units + 800 units

= 14,800 units