Beginning inventory consisted of 10,000 units (20 percent converted)and ending inventory consisted of 20,000 units (40 percent converted).In addition,60,000 units were started during the period.How many equivalent units for conversion costs were produced using the weighted average method?

Question

Quizplus · Accepted Answer

Using the weighted average method, we consider the equivalent units of beginning inventory, units started during the period and ending inventory.
Equivalent units for beginning inventory = 10,000 units x 20% = 2,000
Equivalent units for ending inventory = 20,000 units x 40% = 8,000
Equivalent units for units started during the period = 60,000 units x 100% = 60,000
Total equivalent units for conversion costs = 2,000 + 60,000 + 8,000 = 70,000
Therefore, the answer is option C, 58,000 units.

Beginning Inventory Consisted of 10,000 Units (20 Percent Converted)and Ending