PE 20-4A Equivalent units of conversion costs

The Filling Department of Savannah Lotion Company had 3,000 ounces in beginning work in process inventory (60% complete). During the period, 40,400 ounces were completed. The ending work in process inventory was 600 ounces (25% complete). What are the total equivalent units for conversion costs?


Answer:


Percent 
Total Conversion    Equivalent 
Whole  Completed   Units for 
Units  in Period Conversion 
Inventory in process, beginning of period……………… 3,000 40% 1,200 
Started and completed during the period……………… 37,400* 100% 37,400 
Transferred out of Filling (completed)…………………  40,400 38,600 
Inventory in process, end of period………………………    600 25%   150 
Total units to be assigned costs…………………………  41,000 38,750 
* 40,400 – 3,000