Answer:
The total equivalent units for conversion costs is 40,600.
Explanation:
Under the first-in, first-out method, units that were incomplete for last year are the first to be completed, followed by units started during the year.
<u>Calculation of the total equivalent units for conversion costs :</u>
To Finish Opening Work In Process (5,000 × 70%) = 3,500
Started and Completed ((40,500 - 5,000) × 100 %) = 35,500
Closing Work In Process ( 4,000 × 40%) = 1,600
Total equivalent units for conversion costs = 40,600
Conclusion :
The total equivalent units for conversion costs is 40,600.
