Carrington Corporation produces canned vegetable soup.The company uses the weighted-average method in its process costing system.The company sold 300,000 units in January.Data concerning inventories follow:
What were the equivalent units for conversion costs for January?

Question

Carrington Corporation produces canned vegetable soup.The company uses the weighted-average method in its process costing system.The company sold 300,000 units in January.Data concerning inventories follow:
 What were the equivalent units for conversion costs for January?

Quizplus · Accepted Answer

Weighted-average method
Units in beginning work in process inventory + Units started into production or transferred in = Units in ending work in process inventory + Units completed and transferred out
Finished Goods Inventory:
75,000 + Units completed and transferred to finished goods = 60,000 + 250,000
Units completed and transferred to finished goods = 60,000 + 300,000 - 75,000 = 285,000
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Carrington Corporation Produces Canned Vegetable Soup