Answer (B) is correct . The equivalent units for conversion costs equal total units to account for, minus work done on beginning inventory, minus work not done on ending inventory. Hence, the equivalent units for conversion costs equal 40,800 units [50,000 units – (25% × 8,000 units) – (60% × 12,000 units)].
Answer (A) is incorrect because The number of 34,800 units assumes the beginning inventory was 100% complete.
Answer (C) is incorrect because Conversion-cost EUP based on the weighted-average method is 42,800 units.
Answer (D) is incorrect because The ending inventory was 40% complete, resulting in subtracting 60%, not 40%, of the 12,000 items in ending inventory to determine work not on ending inventory.
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The equivalent units in Marlan’s assembly department for conversion costs for the current month are
