Figure 6-6.The Martin Company uses the weighted average method. The beginning work in process consists of 6,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 120,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs).
-Refer to Figure 6-6. What are the equivalent units of production for conversion costs?
A) 120,000
B) 132,000
C) 122,000
D) 135,000

Question

Quizplus · Accepted Answer

To calculate the equivalent units of production for conversion costs, we need to take into account the ending work in process units as well as the units completed during the period. For the ending work in process, we only take into account the percentage of completion as to conversion costs. Therefore, the calculation is as follows:

Equivalent Units of Production for Conversion Costs = Units Completed + (Ending Work in Process * Percentage of Completion as to Conversion Costs)
Equivalent Units of Production for Conversion Costs = 120,000 + (10,000 * 20%) = 120,000 + 2,000 = 122,000

Therefore, the correct choice is C) 122,000.