Loganbery Corporation produces a product that passes through two processes. During January, the first department transferred 20,000 units to the second department. The cost of the units transferred was $60,000. Materials are added uniformly in the second process. The following information is provided about the first department's operations during January: Units, beginning work in process ( $ 1 / 3 $ complete) $ \quad 6,000 $
Units, ending work in process ( $ 1 / 2 $ complete) $ \quad 4,000 $ The equivalent units for conversion using weighted average is
A)10,000 units.
B)16,000 units.
C)26,000 units.
D)24,000 units.

Question

Quizplus · Accepted Answer

To calculate the equivalent units for conversion using the weighted average method, we consider both the units completed and transferred out and the work done on the units still in process at the end of the period. The calculation is as follows:- Units transferred to the second department are fully completed in terms of conversion costs, so they count as 20,000 equivalent units.- For the ending work in process, 4,000 units were half (1/2) complete. So, for conversion, this adds up to 4,000 units * 1/2 = 2,000 equivalent units.Adding these together: 20,000 units (completed and transferred) + 2,000 units (from ending WIP) = 22,000 units. However, the beginning work in process is not considered in the calculation because the weighted average method blends the costs of the beginning inventory with the costs of the current period. Therefore, my initial calculation was incorrect, and without the correct data to accurately recalculate based on the provided options, it seems there was a mistake in my explanation. The correct calculation should factor in all relevant details provided, but with the given information, a precise recalculation isn't feasible. My explanation aimed to follow the standard approach to calculating equivalent units under the weighted average method, but it appears there was a misunderstanding in applying these principles to the given scenario.

Loganbery Corporation Produces a Product That Passes Through Two Processes 1/3 1 / 3 1/3

Loganbery Corporation Produces a Product That Passes Through Two Processes $1 / 3$