FIN Question 17

The following information is provided by Abbott Corporation:

WIP inventory, January 1	0 units
Units started	12,000
Units completed and transferred out	8,000
WIP inventory, December 31	4,000
Direct materials	$26,700
Direct labor	$15,400
Manufacturing overhead	$9,000

The units in ending WIP inventory were 80% complete for materials and 40% complete for conversion costs. At the end of the year, what are the equivalent units for conversion costs?

		9,600
		4,800
		1,600
		8,000