The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete

The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory was 1,000 tons (30% 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……………… 400 80% 320 
Started and completed during the period……………… 7,500* 100% 7,500 
Transferred out of Rolling (completed)…………………  7,900 7,820 
Inventory in process, end of period………………………  1,000 30%    300 
Total units to be assigned costs…………………………  8,900 8,120 
* 7,900 – 400