Meade Company makes small metal containers.The company began October with 300 containers in process that were 35 percent complete as to material and 45 percent complete as to conversion costs.During the month,6,000 containers were started.At month end,1,900 containers were still in process (40 percent complete as to material and 75 percent complete as to conversion costs).Using the weighted average method,what are the equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

To calculate the equivalent units for conversion costs using the weighted average method, we need to combine the units that are complete (100% complete as to material and conversion costs) and the units that are in process (partially complete).

Units started and completed during the month: 
6,000 containers x 45% complete for conversion costs = 2,700 equivalent units

Units still in process at month end: 
1,900 containers x 75% complete for conversion costs = 1,425 equivalent units

Units in process at month end from beginning inventory: 
300 containers x 45% complete for conversion costs = 135 equivalent units

Total equivalent units for conversion costs: 
2,700 + 1,425 + 135 = 5,260

Therefore, the best choice is C) 5,825.

Meade Company Makes Small Metal Containers