The Rolling Department of Oak Ridge Steel Company had 2,112 tons in beginning work in process inventory (10% complete) on July 1

Accounting Sep 04, 2020

The Rolling Department of Oak Ridge Steel Company had 2,112 tons in beginning work in process inventory (10% complete) on July 1. During July, 35,200 tons were completed. The ending work in process inventory on July 31 was 1,760 tons (80% complete).

What are the total equivalent units for conversion costs? Round to the nearest whole unit.

Expert Solution

Computation of the total equivalent units for conversion costs:-

Total equivalent units = Beginning inventory in process + Started and completed + Ending inventory in process

= (2,112*(1-10%)) + (35,200 - 2,112) + (1,760 * 80%)

= 1,900.80 + 33,088 + 1,408

= 36,396.80 units Or 36,397 units

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