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A cleaning detergent manufacturer offers the following information: WIP Inventory, January 1 Units started Units completed an
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Answer #1

Units completed and transferred out = 16,200

WIP Inventory, December 31 = 10,400 units

Ending WIP inventory is 40% complete for conversion costs

Total equivalent units for conversion costs = Units completed and transferred out + WIP Inventory, December 31 x Percentage complete

= 16,200 + 10,400 x 40%

= 16,200 + 4,160

= 20,360

Second option is the correct option

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