2.) Department R had 5,000 units in work in process that were 75% completed as t

Question

2.) Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period; 30,000 units of direct materials were added during the period; 32,000 units were completed during the period; and 3,000 units were 40% 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.) 31,950

B.) 26,000

C.) 32,450

D.) 29,450

Explanation / Answer

Equivalent unit of conversion cost :

Equivalent unit of conversion = (5000*25%)+(27000*100%)+(3000*40%) = 29450 units

so answer is d) 29,450

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