Question

B Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 4,000 units in its beginning work in process inventory. An additional 66,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 28,000 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

Answer:

W-A equivalent units for conversion cost:  58,800

Explanation:

Under weighted average we will calculate equivalent untis as follows:

the complete units + completion in ending WIP

Calculations for complete units:

beginning WIP:    4, 000

transferred-in:    66, 000

Total                    70, 000

Ending WIP        (28,000)  

Complete units   42,000

Calculation for completion of WIP

ending WIP x percentage of completion

28,000 x 60% = 16,800

Equivalent units

42,000 + 16,800 = 58,800