Question

Following is the information of Piper Company for the month of May:

Units
Work in process, May 1 (10% complete) 4,200
Started in May 17,850
Work in process, May 31 (20% complete) 3,150
Materials and conversion are incurred uniformly throughout the process. ​
The equivalent units of production for conversion using the weighted average method would be _________.

Answer 1

19,530 units

Step-by-step explanation:

For computing the equivalent units for conversion costs , first we have to compute the transferred units which is shown below:

= Beginning work in process inventory units + units started - ending work in process inventory units

= 4,200 units + 17,850 units - 3,150

= 18,900 units

Now the equivalent units for conversion costs equal to

= Transferred units × percentage of completion + ending work in process inventory units × percentage of completion

= 18,900 units × 100% + 3,150 × 20%

= 18,900 units + 630 units

= 19,530 units