Question

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 2,300 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 7,600 65% Conversion costs $ 8,700 45% A total of 10,300 units were started and 7,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 127,400 Conversion costs $ 208,900 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?

Answer 1

EUP of conversion cost: 9480
UNITS TO ACCOUNT FOR:
Beginning Work in Process units			2,300
Add: Units Started in Process			10,300
Total Units to account for:			12,600
UNITS TO BE ACCOUNTED FOR:
Units completed and transfrred out		7,800
Ending Work in Process			4,800
Total Units to be accounted for:		12,600
Equivalent Units:
			UNITS	Material Cost
				% Completion	Units
Units completed and transfrred	7800	100%	7,800
Ending Work in Process	4800	35%	1,680
Total Equivalent units	12600		9,480