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Beginning work in process of 5,900 units was 20% complete for conversion at the start of May. How many equivalent units of conversion does that group contribute in May?
A5,900 units
B1,180 units
C4,720 units
DZero units
Answer & Solution
Correct answer: C. 4,720 units
1. Only conversion work performed during May belongs in the May equivalent unit count.
2. The group was already 20% converted before May began, and that fifth was paid for in April.
3. The remaining 80% of conversion happens in May.
4. Equivalent units are 5,900 units times 80%, which is 4,720 units.
5. 1,180 units is 20% of the group, which is the April share rather than the May share.
6. Zero is the right answer for this group under materials, not under conversion.
_Source: Jonick, Principles of Managerial Accounting (UNG Press, CC BY-SA 4.0), section 3.3 Process Costing Calculations for a Department in a Manufacturing Company_
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