BBC Corporation manufactures snowboards using a two-department process. Direct materials are added in both the Assembly and Shaping Departments at the beginning of the process. Conversion costs are applied uniformly throughout the process. Data for the Shaping Department for the month of March follows:

-Assuming BBC uses the weighted-average method, what were the equivalent units of production for conversion costs?

Question

BBC Corporation manufactures snowboards using a two-department process. Direct materials are added in both the Assembly and Shaping Departments at the beginning of the process. Conversion costs are applied uniformly throughout the process. Data for the Shaping Department for the month of March follows:
 
-Assuming BBC uses the weighted-average method, what were the equivalent units of production for conversion costs?

Quizplus · Accepted Answer

The weighted-average method combines units and costs from both the current and previous periods. The equivalent units for conversion costs would be calculated based on the total units completed and transferred out plus the equivalent units in ending work in process.

BBC Corporation Manufactures Snowboards Using a Two-Department Process