Question

The Filling Department of Eve Cosmetics Company had 3,300 ounces in beginning work in process inventory (50% complete). During the period, 37,000 ounces were completed. The ending work in process inventory was 2,600 ounces (50% complete).

What are the total equivalent units for conversion costs?

If required, round to the nearest unit.

Answer 1

• Requirement:
  Total equivalent units for Conversion Cost
• There can be possible two answers depending upon the fact whether Weighted Average method is used or FIFO method is used.
• Answer by Weighted Average method:

EUP - Weighted Average Method	Units	% Conversion	EUP - Conversion
Units TRANSFERRED	37,000	100%	37,000
Units of ENDING WIP	2,600	50%	1,300
Equivalent Units of Production			38,300 Answer

• Answer by FIFO Method

EUP - FIFO Method	Units	% Conversion	EUP - Conversion
Units of ENDING WIP	2,600	50.0%	1,300
Units STARTED & COMPLETED	33,700	100%	33,700
Units of beginning WIP	3,300	50.00%	1,650
Equivalent Units of Production			36,650 Answer