Question

A department adds raw materials to a process at the beginning of the process and incurs conversion

Answer 1

Answer: 78,000 units

Step-by-step explanation:

Equivalent units of production for conversion costs = Units completed and transferred out + Equivalent unit of ending units

Units completed and transferred out = Units started - Ending units

= 90,000 - 20,000

= 70,000 units

Equivalent unit of ending units = 20,000 * 40%

= 8,000 units

Equivalent units of production for conversion costs = 70,000 + 8,000

= 78,000 units