Department A had no work in process at the beginning of the period, 16,000 units were started during the period, 2,000 units were 40% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period (assuming the company uses FIFO): Assuming that all direct materials are placed in process at the beginning of production, what are the conversion cost equivalent units?

Respuesta :

Answer:

Conversion Cost Equivalent Units = 14,800

Explanation:

Beginning WIP = 0

Started 16,000

Ending 2,000 at 40%

Equivalent cost for conversion

[tex]Started\: Units - Ending \: units \times (1-completion)[/tex]

[tex]16,000 - 2,000 \times (1-0.40) = 16,000 - 2,000 \times 0.6 = \\16,000 - 1,200 = 14,800[/tex]

There was none beginning inventory and the direct materials information is not relevant to calculate the conversion cost.