Question

Assume 1,000 units were completed and transferred out during the period. The 80 units left in ending WIP are 20​% complete with respect to conversion costs. The total equivalent units for conversion costs would be

A. 16
B. 1000
C. 1016
D. 1080

Answer 1

Answer:

C. 1016

Explanation:

The computation of the total equivalent units for conversion cost is shown below:

= Completed and transferred units × completion percentage + ending work in process units × completion percentage

= 1,000 units × 100% + 80 units × 20%

= 1,000 units + 16 units

= 1,016 units

We simply added the completion units and the ending work in process units