Rubenstein Company makes small metal containers.The company began April with 250 containers in process that were 30 percent complete as to material and 40 percent complete as to conversion costs.During the month,5,000 containers were started.At month end,1,700 containers were still in process (45 percent complete as to material and 80 percent complete as to conversion costs).Using the weighted average method,what are the equivalent units for conversion costs?

Question

Quizplus · Accepted Answer

To calculate equivalent units for conversion costs using the weighted average method, we need to consider the work done during the current period as well as the work already in process at the beginning of the period.

Step 1: Calculate the equivalent units for materials.

Units in process at the beginning: 250 x 30% = 75
Units started during the period: 5,000
Units in process at the end: 1,700 x 45% = 765

Equivalent units for materials = 75 + 5,000 + 765 = 5,840

Step 2: Calculate the equivalent units for conversion costs.

Units in process at the beginning: 250 x 40% = 100
Units started during the period: 5,000
Units in process at the end: 1,700 x 80% = 1,360

Equivalent units for conversion costs = 100 + 5,000 + 1,360 = 6,460

Therefore, the answer is D) 4,910.

Rubenstein Company Makes Small Metal Containers