Question

B Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory. An additional 68,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 33,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month

Answer 1

60,300 Units

Step-by-step explanation:

Given:

Beginning work in process = 5,000 (units)

Units in production = 68,500 (units)

Ending work in process = 33,000 (units)

Weighted-average method

Units Transferred = Beginning work in process + Units in production - Ending work in process

= 5,000 + 68,500 - 33,000 = 40,500 (Units)

Conversion Units

Ending work in process × 60%

Conversion Units = 33,000 × 60%

19,800 (Units)

Equivalent units of production = Units Transferred + Conversion Units

= 40,500 (Units) + 19,800 (Units)

= 60,300 Units