Winters Company uses a weighted average process costing system and started 36,000 units this month.Winters had 15,000 units that were 25 percent complete as to conversion costs in beginning Work in Process Inventory and 6,000 units that were 35 percent complete as to conversion costs in ending Work in Process Inventory.What are equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

Equivalent units for conversion costs are calculated by adding the units completed and transferred out to the equivalent units in ending inventory. Units completed and transferred out are 45,000 (15,000 beginning + 36,000 started - 6,000 ending). Equivalent units in ending inventory are 6,000 * 35% = 2,100. Therefore, total equivalent units for conversion costs are 45,000 + 2,100 = 47,100.

Winters Company Uses a Weighted Average Process Costing System and Started