Question

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Units of Product Percent of Conversion Added Beginning Work in Process 273,000 70 % Units started 509,000 100 % Units completed 577,200 100 % Ending Work in Process 204,800 60 %

Answer 1

$700,080

Step-by-step explanation:

The computation of the total equivalent units of production is as follows:

For conversion costs

= Units completed × percentage of completion + Ending work in process × percentage of completion

= $577,200 × 100% + $204,800 × 60%

= $577,200 + $122,880

= $700,080

We simply multiplied the units completed with the completion percentage and then added to ending work in process after considering the completion