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Solution

The number of units to be accountd for would be units with respect to which materials have been fully applied as well as conversion costs have been incurred. Such units in the given case are 26,000.

To this we add \'Equivalent\' number of units which are not 100% converted but nevertheless materials have been applied. Suhc units in the given case would be calculated as follows:

3000 units x 41% conversion = 1,230 Units

Therefore number of units to be accounted for would be 26,000 + 1,230 = 27,230 Units

Equivalent number of units in terms of:

Materials: Would be all the units that have been applied materials to i.e., 30,000 units

Conversion: Would be all the units that have been converted into finished goods plus partly converted units = 26,000 + 3000 x 41% = 27,230 units