Answer (B) is correct . Given that BWIP (1,000 units) was already 60% complete, 400 equivalent units were needed for completion. In addition, 3,000 units were started and completed during the period. The 2,000 units in EWIP equal 400 equivalent units since they are 20% complete. Total equivalent units are 3,800 (400 + 3,000 + 400).
Answer (A) is incorrect because The units started and completed during November plus the 20% of work-in-process complete as to conversion costs equals 3,400 units (3,000 + 400).
Answer (C) is incorrect because The number of units started and completed in November and the units completed and transferred out from BI equals 4,000 units (3,000 + 1,000).
Answer (D) is incorrect because The number of units started and completed in November, plus the units completed and transferred out from BI, plus the 20% of work-in-process complete as to conversion costs equals 4,400 units (3,000 + 1,000 + 400).
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Using the FIFO method, Levittown’s equivalent units for conversion costs for November are
