Wilson Tech's production cost data for the current period is: Beginning Work‐in‐Process 0 units Units Started 16,000 units Units Transferred Out 9,800 units Ending Work‐in‐Process 6,200 units Materials are entered at the beginning of the process. The Ending Work‐in‐Process units are 40% complete as to conversion costs. Using the FIFO method, what are the equivalent units of production for conversion costs?

equivalent units of conversion (under FIFO) = [units in beginning inventory x ( 1 - previous conversion rate)] + units started and completed + (units in ending inventory x conversion rate) =

units in beginning inventory = 0
units started and completed = 9,800
units in ending inventory = 6,200

equivalent units of conversion (under FIFO) = 0 + 9,800 + (6,200 x 40%) = 9,800 + 2,480 = 12,280 units

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