Question

# B Corporation uses the weighted-average method in its process costing system. The Assembly Department started the...

B Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 2,200 units in its beginning work in process inventory. An additional 61,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 19,000 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?

Multiple Choice

78,300

54,560

44,700

Firstly we need to compute the number of unit completed and transferred to the next department which is shown as follows:-

Opening WIP+Units started-Closing WIP = Units completed and transferred

2,200 units+61,500 units-19,000 units = 44,700 units

Equivalent units for conversion costs = Units completed+(Closing WIP*Percentage completion)

= 44,700 units+(19,000 units*60%)

= 44,700 units+11,400 units = 56,100 units

Therefore the equivalent units for conversion costs in the Assembly Department for the month were 56,100 units.

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