Assume 1,000 units were completed and transferred out during the period. The 80 units left in ending WIP are 20% complete with respect to conversion costs. The total equivalent units for conversion costs would be

A. 16
B. 1000
C. 1016
D. 1080

C. 1016

Explanation:

The computation of the total equivalent units for conversion cost is shown below:

= Completed and transferred units × completion percentage + ending work in process units × completion percentage

= 1,000 units × 100% + 80 units × 20%

= 1,000 units + 16 units

= 1,016 units

We simply added the completion units and the ending work in process units

Uncollectible account expense  $8,600

Explanation:

The computation of the amount as the Uncollectible Accounts Expense on its Year 2 income statement is given below:

Allowance account - Beg year 2    $3,600 Credit

Written off account   $6,600    Debited by

 Unadjusted balance in Allowance account  $3000  Debit

Adjusted balance required in Allowance account  $5,600  Credit

Uncollectible account expense  $8,600