Following is the information of Unicorn Inc. for the month of June:

Units

Work in process, June 1 (25% complete) 4,400

Started in June 35,200

Work in process, June 30 (35% complete) 13,200

Materials are added at the beginning of the process.

The equivalent units of production for conversion costs using the weighted average method would be:

a. 34,800.

b. 36,000.

c. 35,600.

d. 31,020.

d. 31,020.

Explanation:

The computation of the equivalent units of production for the conversion cost is shown below:

We know that,

Ending work in progress inventory = Units started - units completed + beginning work in progress inventory

13,200 units = 35,200 units - units completed + 4,400 units

So, units completed = 35,200 units - 13,200 units + 4,400 units

= 26,400 units

It is given in the question that 35% ending work in progress inventory units is completed,

So completed units = 13,200 * 35% = 4,620 units

So, the equivalent units of production equals to

= Units completed + completed units in ending inventory

= 26,400 units + 4,620 units

= 31,020 units