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16 November, 08:53

Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 86,000 units, 70% complete as to materials and 25% complete as to conversion. Units started and completed: 262,000. Units completed and transferred out: 348,000. Ending Inventory: 33,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of conversion.

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  1. 16 November, 09:12
    0
    The equivalent units of conversion is 351,300

    Explanation:

    The computation of the conversion equivalent units is shown below:

    = (Units completed and transferred out * conversion percentage) + (Ending Inventory * conversion percentage)

    = 348,000 * 100% + $33,000 * 10%

    = 348,000 + 3,300

    = 351,300

    All other information which is given in the question are not relevant. So, ignore other information.
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