CIMA BA2 · Chapter 5 · Question 7 of 10
A process has no opening work in progress. During the period 9,000 units were started, of which 7,400 were completed. The 1,600 units in closing work in progress were complete as to materials and 35% complete as to conversion costs. How many equivalent units of CONVERSION costs were produced?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) 7,960
Explanation
Completed units are 100% complete for conversion: 7,400 equivalent units. Closing WIP = 1,600 x 35% = 560 equivalent units. Total = 7,400 + 560 = 7,960 equivalent units.
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