Question

Jastak Company uses the weighted-average method in its process costing system. Operating data for the painting department for the month of April appear below:

Percent Complete with
Units Respect to Conversion
Beginning work in process inventory 1,000 80%
Transferred in from the prior-
department during April 98,800
Ending work in process inventory 8,300 90%

What were the equivalent units for conversion costs in the Painting Department for April?

Answer 1

The equivalent units for conversion costs in the Painting Department for April can be determined as follows:

Beginning Work in Process Inventory - 1,000 x 20% = 200 units

add Transferred from prior department - 98,800 x 100% = 98,800 units

less ending work in process inventory - 8,300 x 90% = 7,470 units

Total transferred out - 91,530 units (100% complete)

Step-by-step explanation:

Equivalent units in costing are obtained by multiplying the units with the percentage of work to be done.

a) For beginning work in process inventory, 80% was completed previously, so work to be done in April was 100 - 80 = 20%

b) For transfer from prior department, 100% work was to be done in April.

c) For ending work in process, 90% work was done in April, leaving 10% to be completed in May.