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Barnes and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10,000 units of ending work in process at 80% completion and 32,000 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period?a) 8,000.
b) 30,000.
c) 42,000.
d) 40,000.

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thaovtp1407

Answer:

30,000 units

Explanation:

Given:

  • Physical units or Unit started: 32,000
  • Unit in process:  10,000
  • Ending work in process at 80% completion

We need to find the units completed and completed units in ending inventory in order to find the equivalent units for conversion costs.

As given in the question, units completed:

10,000 × 80% = 8,000 units

Completed units in ending inventory:

Unit started - Unit in process

= 32,000 - 10,000

= 22,000 units.

So the equivalent units is:

22,000 units+ 8,000 units

= 30,000 units

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