Simpson Company Simpson Company adds material at the start of production.The following production information is available for September:
Refer to Simpson Company.What are the equivalent units for conversion using the weighted average method?

Question

Simpson Company Simpson Company adds material at the start of production.The following production information is available for September:
 Refer to Simpson Company.What are the equivalent units for conversion using the weighted average method?

Quizplus · Accepted Answer

Equivalent units for conversion using the weighted average method can be calculated as follows: 
Equivalent units = Units completed and transferred out + Equivalent units in ending work in process inventory 
Units completed and transferred out = 100,000 
Equivalent units in ending work in process inventory = 30% * 40,000 = 12,000 
Equivalent units = 100,000 + 12,000 = 128,000 
Therefore, the correct answer is (C) 128,360, which is the closest option to our calculated equivalent units.

Simpson Company Simpson Company Adds Material at the Start of Production.The