To find the equivalent units for conversion costs in the Rolling Department, we can use the following formula:

$\text{Equivalent units for conversion costs} = \text{Units completed} + (\text{Ending WIP inventory} \times \text{Percentage complete})$

Step 1: Given Data

• Beginning WIP inventory: 5,995 tons (60% complete, but we don't need this for equivalent units, only for costs if asked)
• Units completed: 54,500 tons
• Ending WIP inventory: 3,270 tons (20% complete)

Step 2: Calculate Equivalent Units

We use the units completed and the partially completed units in ending inventory to calculate the total equivalent units.

$\text{Equivalent units} = 54,500 + (3,270 \times 0.20)$

Now, let’s compute that:

$\text{Equivalent units} = 54,500 + (654) = 55,154 \text{ tons}$

Thus, the total equivalent units for conversion costs are 55,154 units.

Would you like more details on any specific part of this process?

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Here are 5 related questions to explore further:

1. How do we calculate equivalent units if both materials and conversion costs are involved?
2. What is the role of percentage completion in calculating equivalent units?
3. How does the calculation change if the beginning WIP inventory percentage completion was higher?
4. What is the significance of equivalent units in process costing?
5. How are conversion costs different from material costs in process costing?

Tip: Always check the completion percentages carefully—they directly impact the equivalent units calculation!