Answer:
total equivalent units are 131,000 units
correct option is D) 131,000
Explanation:
given data
Inventory = 25,000 units
started Inventory = 110000 units
Work-in-Process Inventory = 20,000 units
to find out
equivalent units for conversion costs
solution
we know complete units are started Inventory - Work-in-Process Inventory
complete units = 110,000 – 20,000
complete units = 90,000
and
total units completed before ending work in process is
total units completed before ending work 25,000 + 90,000
total units completed before ending work = 115,000
so
total units completed in ending work in process is 80% of 20,000
total units completed in ending work = 20000 x 0.80
total units completed in ending work = 16,000
so now
total equivalent units are
total equivalent units = 115,000 + 16,000
total equivalent units are 131,000 units
correct option is D) 131,000
