Question

Equivalent Units of Conversion Costs The Rolling Department of Kraus Steel Company had 4,662 tons in beginning work in process inventory (60% complete) on October 1. During October, 66,600 tons were completed. The ending work in process inventory on October 31 was 4,662 tons (20% complete). What are the total equivalent units for conversion costs? Round to the nearest whole unit. 67,532 X units Feedback Check My Work Are you determining the equivalent units of materials added or of conversion of materials? When would materials typically be added in the process? When would conversion of these materials take place? Recall the definition of work in process.

Answer 1

The total equivalent units for Conversion costs 64,735 Workings: FIFO process costing method Equivalent Units Physical Conversion Units costs Units Units account for: Beginning work in process Started and Completed Completed and transferred Ending work in process Total units accounted for 4,662 40% 61,938 100% 66,600 4,662 20% 71,262 1.865 61,938 63.803 932 64.735