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Intask Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 6,800 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 5,800 units that were 60% complete with respect to conversion costs. If 13,600 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be:

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Answer:

The equivalent units of production for conversion cost would be $11,680 units

Explanation:

The computation of the equivalent unit of conversion is shown below:

= (Beginning inventory units × remaining percentage)  + (units started and  completed units × completed percentage) + (ending inventory units × completed percentage)

= (6,800 units × 25%) + (6,500 units × 100%)  + (5,800 units × 60%)

= 1,700 units + 6,500 units + $3,480 units

= $11,680 units

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