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

To calculate equivalent units for conversion using the weighted average method, we need to combine the units completed during the period with the units in ending work in process inventory and compute the equivalent units of production.

Equivalent units for direct materials = Units completed + (Ending work in process x % complete)
Equivalent units for conversion = Units completed x % complete + (Ending work in process x % complete)

Using the data given, we have:
- Units completed: 110,000
- Ending work in process inventory: 20,000 (30% complete for direct materials and 60% complete for conversion)

Equivalent units for direct materials:
= Units completed + (Ending work in process x % complete)
= 110,000 + (20,000 x 30%)
= 116,000

Equivalent units for conversion:
= Units completed x % complete + (Ending work in process x % complete)
= 110,000 x 100% + (20,000 x 60%)
= 110,000 + 12,360
= 122,360

Therefore, the equivalent units for conversion using the weighted average method is 122,360, which corresponds to choice C.

Simpson Company Simpson Company Adds Material at the Start of Production