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Equivalent Units of Conversion Costs The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process
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Whole Units Percent conversion added in period Equivalent units for Conversion  
Inventory in process , beginning 200 40% (100-60%) 80 [200*40%]
Started and completed in October 3,700 100% 3,700 [3,700*100%]
Transferred out of rolling 3,900
Inventory in process, Ending 300 25% 75 [300*25%]
Total Equivalent units for conversion 3,855 [80+3,700+75]

Workings:

Started and completed = Total completed - Beginning inventory

= 3,900 - 200 = 3,700

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