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9 January, 09:21

erkins Company uses the weighted-average method in its process costing system. The company sold 250,000 units during the current month. The following data were taken from the company's accounting records: [O4] Beginning inventory Work in Process (Packing Department) : none Finished Goods: 75,000 units Ending Inventory Work in Process (Packing Department) (75% complete as to conversion) : 16,000 units Finished Goods: 60,000 units What were the equivalent units of production for conversion costs in the Packing Department for the current month?

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  1. 9 January, 10:18
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    The equivalent units of production for conversion costs were:

    Ending Inventories:

    Work in Process - Eqvivalent units (16000*75%) = 12,000

    Finished Goods = 60,000

    Add:Units sold during the month = 250,000

    322,000

    Less:

    Beginning Inventories:

    Work in Process - Eqvivalent units = 0

    Finished Goods = 75,000

    Equivalent Units of Production = 247,000
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