Figure 6-6. The Martin Company uses the weighted average method.The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs).The number of units completed was 120,000.The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs).
Refer to Figure 6-6.What are the equivalent units of production for conversion costs?
A)120,000
B)132,000
C)122,000
D)135,000

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs are calculated by adding the units completed (120,000) to the equivalent units in ending work in process (10,000 units * 20% = 2,000), totaling 122,000.