weighted average method in its process costing system. Units % complete for Conversion Beginning work in process inventory 5,000 50% Transferred from prior department 76,000 Ending work in process inventory 2,400 70% What were the equivalent units for conversion costs in the department for the month?

Question

Business

Dominick Mckinney

11 September, 02:44

weighted average method in its process costing system. Units % complete for Conversion Beginning work in process inventory 5,000 50% Transferred from prior department 76,000 Ending work in process inventory 2,400 70% What were the equivalent units for conversion costs in the department for the month?

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Answers (1)

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Peppermint · Answer 1

The equivalent units for conversion costs in the department for the month is 80,280 units

Explanation:

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

= Units started and completed * percentage of completion + ending work in progress units * percentage of completion

where,

Units started and completed = Beginning work in process inventory units + transferred units - ending work in process inventory units

= 5,000 units + 76,000 units - 2,400 units

= 78,600 units

The other items values would remain the same

Now put these values to the above formula

So, the value would equal to

= 78,600 units * 100 + 2,400 * 70%

= 78,600 units + 1,680 units

= 80,280 units