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?A. 86,100B. 42,900C. 55,520D. 57,900

Answer 1

Total equivalent units= 60,300

Step-by-step explanation:

Giving the following information:

Beginning inventory= 5,000 units

An additional 68,500 units were transferred in from the prior department.

There were 33,000 units in the ending work in process inventory of the Assembly Department that were 60% complete concerning conversion costs.

We need to calculate the number of conversion units.

We will use the following structure:

Beginning WIP= 5,000

Transferred-in= 68,500

Total= 73,500

Ending WIP= (33,000)

Complete units= 40,500

The calculation for completion WIP:

ending wip*completion of WIP

33,000*0.6= 19,800

Total equivalent units= 40,500 + 19,800= 60,300