Fabert Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 16,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 65,000 units were completed in the Assembly Department and transferred to the next processing department. There were 11,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?
A) 65,000
B) 70,500
C) 64,100
D) 55,000

Question

Quizplus · Accepted Answer

To calculate equivalent units for conversion costs in the Assembly Department, we need to add together the equivalent units for beginning work in process inventory, units started and completed, and ending work in process inventory.

Equivalent units for beginning work in process inventory = 16,000 x 40% = 6,400
Equivalent units for units started and completed = 60,000
Equivalent units for ending work in process inventory = 11,000 x 50% = 5,500

Total equivalent units = 6,400 + 60,000 + 5,500 = 70,900

Therefore, the equivalent units for conversion costs in the Assembly Department for the month is 70,500 (rounded to the nearest hundred). Option B is the correct choice.

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