Barnes and miller manufacturing is trying to determine the equivalent units for conversion costs with 10,000 units of ending work in process at 80% completion and 14500 physical units. there are no beginning units in the department. conversion costs occur evenly throughout the entire production period. what are the equivalent units for conversion costs for the current period?

The equivalent units for conversion costs for the current period is 12,500 units

Explanation:

We know that,

Ending work in progress inventory = Units started - units completed

10,000 units = 14,500 units - units completed

So, units completed = 14,500 units - 10,000 units = 4,500 units

It is given in the question that 80% ending work in progress inventory units is completed,  

So completed units = 10,000 × 80% = 8,000 units

So,the equivalent units of production equals to

= Units completed + completed units in ending inventory

= 4,500 units + 8,000 units

= 12,500 units

the answer is "b.the increased supply will create a surplus. "

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