Equivalent units for materials total 40000. There were 32000 units completed and transferred out. Equivalent units for conversion costs equal 36000. How much are the physical units for conversion costs if ending work in process is 50% complete?

A) 36000.
B) 40000.
C) 8000.
D) 32000.

Equivalent Units

Equivalent units are a concept in cost accounting used to apportion costs to partially completed goods, calculating them as if they were finished units.

Conversion Costs

The combined costs of direct labor and manufacturing overheads, representing the costs involved in converting raw materials into finished products.

Work in Process

Inventory that includes goods in the process of being manufactured but not yet completed.