Andersen Corporation Andersen Corporation has the following information for the current month:

Units started 95,000 units

Beginning Work in Process: (30% complete) 15,000 units

Normal spoilage (discrete) 3,000 units

Abnormal spoilage 4,000 units

Ending Work in Process: (75% complete) 15,000 units

Transferred out 88,000 units

Beginning Work in Process Costs:

Material $18,000

Conversion 14,000

All materials are added at the start of the production process.Andersen Corporation inspects goods at 75 percent completion as to conversion. Refer to Andersen Corporation.What are equivalent units of production for conversion costs assuming weighted average is used?

Question

Andersen Corporation Andersen Corporation has the following information for the current month:

Units started	95,000 units
Beginning Work in Process: (30% complete)	15,000 units
Normal spoilage (discrete)	3,000 units
Abnormal spoilage	4,000 units
Ending Work in Process: (75% complete)	15,000 units
Transferred out	88,000 units
Beginning Work in Process Costs:
	Material $18,000
	Conversion 14,000

All materials are added at the start of the production process.Andersen Corporation inspects goods at 75 percent completion as to conversion. Refer to Andersen Corporation.What are equivalent units of production for conversion costs assuming weighted average is used?

Quizplus · Accepted Answer

To calculate equivalent units of production for conversion costs using the weighted average method, we need to take the units completed and transferred out (65,000) and add it to the equivalent units in ending work in process inventory. 
Equivalent units of production for conversion costs = Completed and transferred out + (Ending work in process inventory x Percentage of completion)
= 65,000 + (20,000 x 75%) 
= 65,000 + 15,000 
= 80,000 
Therefore, the answer is B (104,500).

Andersen Corporation Andersen Corporation Has the Following Information for the Current Month