Question

Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 4,800 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 68,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 32,000 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

Equivalent units for conversion costs = 60,000 units

Step-by-step explanation:

Units transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in progress inventory

Units transferred to the next department = 4,800 + 68,000 - 32,000

Units transferred to the next department = 40,800

Ending work in progress for conversion = 32,000 * 60%

Ending work in progress for conversion = 19,200

Equivalent units for conversion costs = Units transferred to the next department + Ending work in progress for conversion

Equivalent units for conversion costs = 40,800 + 19,200

Equivalent units for conversion costs = 60,000 units