In the month of August, a department had no units in beginning work in process.

Question

In the month of August, a department had no units in beginning work in process. During August, 80,000 units were started into production. At the end of of the month there were 7,200 units in ending work in process that were 65% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion for August was...

4,680.

6,100.

none of these.

7,200.

4,680.

6,100.

none of these.

7,200.

Explanation / Answer

c. None of these

The equivalent units of production will be:

Conversion costs = 80,000 - 7,200 + (7,200*65%) = 77,480

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