The Refining Department of Crystal Cane Sugar, Inc. had 70,000 tons of sugar to

Question

The Refining Department of Crystal Cane Sugar, Inc. had 70,000 tons of sugar to account for in December. Of the 70,000 tons, 50,000 tons were completed and transferred to the Boiling Department, and the remaining 20,000 tons were 60% complete. The materials required or production are added at the beginning of the process. Conversion costs are added equally throughout the refining process. The weighted-average method is used. Calculate e total equivalent units of production for conversion costs A. 70,000 units O B. 50,000 units O C. 62,000 units O D. 12,000 units

Explanation / Answer

C. 62,000 units

Equivalent units for conversion costs = 50,000 + (20,000 × 60%)

Equivalent units for conversion costs = 62,000

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