Lemony lemonade has​ 3,200 gallons of lemonade in wip​ inventory, with​ 76% of materials already added. The lemonade is​ 50% through the process. Assuming all conversion costs are added evenly throughout the​ process, what are the equivalent units for conversion​ costs?.

Respuesta :

Based on the process that Lemony Lemonade uses to make lemonade, the equivalent units for conversion​ costs is 1,600 units.

What equivalent units are for conversion costs?

This can be found as:

= Number of units that are WIP x Percentage of completion

Solving gives:

= 3,200 x 50%

= 1,600 units

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