In: Accounting
Equivalent Units of Conversion Costs
The Filling Department of Eve Cosmetics Company had 9,400 ounces in beginning work in process inventory (90% complete). During the period, 85,900 ounces were completed. The ending work in process inventory was 6,000 ounces (10% complete).
What are the total equivalent units for conversion costs?
If required, round to the nearest unit.
Calculation of the total equivalent units for conversion costs | |||
Particulars | Whole units (A) | Percentage conversion | Equivalent units |
Added in period (B) | of materials (A x B) | ||
Beginning work in process inventory | 9,400.00 | 10% | 940.00 |
Add: Started and completed (85,900 - 9,400) | 76,500.00 | 100% | 76,500.00 |
Transferred out of filling (completed) | 85,900.00 | 77,440.00 | |
Add: ending work in process inventory | 6,000.00 | 10% | 600.00 |
Total units to be assigned costs | 91,900.00 | 78,040.00 |