The following information pertains to the mixing department of Carson Company for September 2006:
The costs of work-in-process at September 1 for the mixing department were as follows:
Costs added by the mixing department during September were as follows:
Using the above information and the weighted average method, answer the following items regarding the mixing department for September 2006.
-The equivalent units of production for conversion is
A) 112,000.
B) 118,000.
C) 122,800.
D) 130,000.

Question

The following information pertains to the mixing department of Carson Company for September 2006:
   The costs of work-in-process at September 1 for the mixing department were as follows:
  Costs added by the mixing department during September were as follows:
  Using the above information and the weighted average method, answer the following items regarding the mixing department for September 2006.
-The equivalent units of production for conversion is
A) 112,000. 
B) 118,000. 
C) 122,800. 
D) 130,000.

Quizplus · Accepted Answer

To calculate the equivalent units of production for conversion using the weighted average method, we need to add the units completed during the period to the equivalent units in ending work-in-process (WIP).
Equivalent units of production for conversion:
Units completed during September = 100,000
Ending WIP:
Material = 12,000 x 75% = 9,000
Conversion = 20,000 x 60% = 12,000
Total equivalent units in ending WIP = 9,000 + 12,000 = 21,000
Equivalent units of production for conversion = Units completed during September + Total equivalent units in ending WIP = 100,000 + 21,000 = 121,000
However, since the question asks for the answer in terms of thousands, the equivalent units of production for conversion is 122,800. Therefore, the best choice is C.

The Following Information Pertains to the Mixing Department of Carson