Zungu Limited provided you with the following information regarding their business operations during May 2020: UNITS Work in process: May 1 (10% complete) 4 000 Put into process during May 17 000 Work in process: May 31 (20% complete) 3 000 Material and conversion costs are incurred uniformly throughout the process.
The equivalent units of production for conversion cost if the weighted average method is in use, would be: (2) a. 17 400 units b. 22 000 units c. 21 000 units d. 18 600 units
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Zungu Limited | |||
Weighted Average | Physical Units | % Conversion | EUP- Conversion |
Units completed and transferred out | 18,000.00 | 100% | 18,000.00 |
Ending work in process inventory | 3,000.00 | 20% | 600.00 |
Equivalent units of production | 21,000.00 | 18,600.00 | |
So equivalent units of production for conversion cost is 18,600. Option D. |
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