The Finishing Department had 6,700 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 18,400 units were received from the previous department. The ending Work-in-Process Inventory consisted of 3,700 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. What are the equivalent units of production for the conversion costs during the period

20,500‬ units

Explanation:

From the beginning work in process, the stock was only 30% complete in respect to Conversion cost so conversion cost was;

= 6,700 * 70%

= ‭4,690‬ units

Ending work in process showed units were only complete in respect to conversion by 30% so 70% remains;

= 3,700 * 70%

= ‭2,590‬ units

Equivalent units of production for conversion is;

= Beginning EUP + Units transferred in - Ending EUP

= 4,690 + 18,400 - 2,590

= ‭20,500‬ units

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