Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 68,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 33,000 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?
A) 40,500
B) 96,500
C) 56,800
D) 60,300

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs will be calculated as follows:

Units in beginning work in process inventory: 5,000
Units started during the month: 68,500
Total units to account for: 73,500

To calculate equivalent units, we need to account for the percentage of completion of units in beginning work in process inventory and units completed during the month:

Equivalent units for units in beginning work in process inventory: 5,000 x 70% = 3,500
Equivalent units for units started during the month: 68,500 x 100% = 68,500
Equivalent units for units in ending work in process inventory: 33,000 x 60% = 19,800

Total equivalent units for conversion costs: 3,500 + 68,500 + 19,800 = 91,800

Therefore, the answer is D) 60,300.

Bims Corporation Uses the Weighted-Average Method in Its Process Costing