Question

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:

Units: Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.

Required:
Calculate the equivalent units of conversion.

a. 110,000
b. 140,000
c. 144,000
d. 130,250
e. 165,000

Answer 1

UNITS TO ACCOUNT FOR :

`\text{Beginning Work}` in Process units $
`25,000`

`\text{Add: Units Started}` in Process $
`14,000`

Total Units to account for $
`165,000`

UNITS TO BE ACCOUNTED FOR:

`\text{Units completed}` and transferred out $
`135,000`

`\text{Ending Work}` in Process $
`30,000`

`\text{Total Units}` to be accounted for $
`165,000`

`\text{Equivalent units}`

Material cost Conversion

% of completion Units % of completion Units

`\text{Units started}`
`100\%` $
`135,000`
`100\%` $
`135,000`

and completed.

`\text{Ending Work}` in Process
`100\%`
`30,000`
`30\%`
`9000`

`\text{Total equivalent units}`
`165,000`
`144,00`

Therefore, the equivalent units of conversion is
`144,000 \text{ units}.`