A department adds raw materials to a process at the beginnin

A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 90800 units were started into production in January; and there were 19300 units that were 30% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for conversion costs for the month of January?

Solution

Solution: 77,290

Working:

WIP, Beginning 0

Started in Production 90,800

Total Units 90,800

Transferred Out (90,800-19300) 71,500

conversion units WIP, Ending (19,300*0.3) 5790

Total Units 77,290