-Department A had 4,000 units in work in process that were 60% completed as to l

Question

-Department A had 4,000 units in work in process that were 60% completed as to labor and overhead at the beginning of the period, 29,000 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?

Explanation / Answer

Calculation of the number of equivalent units of production for conversion costs for the period :

Beginning work in process (4,000 * 40%) = 1,600
Add: Units started and completed = 27,000
Add: Ending work in process (2,000 * 80%) = 800

Equivalent units of production = 29,400

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