Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 4,600 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 67,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 31,000 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

Question

Business

Luna Wade

6 February, 11:37

Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 4,600 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 67,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 31,000 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

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Answers (1)

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Yahir Zhang · Answer 1

59,700 units

Explanation:

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

= Opening work in process units * completion percentage + units started and completed * completion percentage + ending work in process units * completion percentage

= 4,600 units * 100% + 36,500 units * 100% + 31,000 units * 60%

= 4,600 units + 36,500 units + 18,600 units

= 59,700 units