Asked by Alicia Pinell on Jul 06, 2024

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The equivalent units for February for conversion costs were:

A) 9,800
B) 11,200
C) 12,800
D) 11,600

Equivalent Units

A concept used in process costing that converts partially completed units into a smaller number of fully completed units.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the expenditures to convert raw materials into finished goods.

  • Gain insight into the calculation of equivalent units concerning conversion costs and materials within a processing unit.
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Verified Answer

AW
Avery WalterJul 07, 2024
Final Answer :
D
Explanation :
To determine the equivalent units for conversion costs, we need to add the units completed and transferred out to the equivalent units in ending work in process inventory. The question does not provide us with the number of units completed and transferred out, so we can only use the information given to find the equivalent units in ending work in process inventory.

The question does provide us with the following information:
- Beginning work in process inventory for conversion costs is not given, so we ignore it
- Units started and completed during February for conversion costs is not given, so we ignore it
- Ending work in process inventory for conversion costs is given as 5,800 units.

Since there are 5,800 units in ending work in process inventory, we can use this as the equivalent units for conversion costs.

Therefore, the answer is D) 11,600 because choice D is the only one that matches the equivalent units in ending work in process inventory.
Explanation :
Weighted-average method equivalent units of production Weighted-average method equivalent units of production