The following information pertains to North Company: $\begin{array}{lr}
&\text { Units }\
\text { Work in process, January } 1 \text { (20\% complete) } & 8,000 \
\text { Started in January } & 40,000 \
\text { Work in process, January } 31 & 12,000
\end{array}$
Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method was 39,000,how complete was ending work in process at January 31?

Question

The following information pertains to North Company: $\begin{array}{lr}
&\text { Units }\
\text { Work in process, January } 1 \text { (20\% complete) } & 8,000 \
\text { Started in January } & 40,000 \
\text { Work in process, January } 31 & 12,000
\end{array}$
 Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method was 39,000,how complete was ending work in process at January 31?

Quizplus · Accepted Answer

Since materials are added at the beginning of the process, equivalent units of production for conversion would only consider the completion of the conversion process. Therefore, ending work in process at January 31 would not have completed the conversion process entirely. 
If equivalent units of production for conversion are 39,000, it means that 39,000 units have completed the conversion process. Let's assume that ending work in process has x units. Then, the total number of units in ending work in process would be x + 39,000. 
If ending work in process was 25% complete, then the number of equivalent units of production for conversion would be:
0.25(x + 39,000) = 39,000 
0.25x + 9,750 = 39,000 
0.25x = 29,250 
x = 117,000 
Therefore, ending work in process at January 31 was 117,000 units, and since it was 25% complete, it means that 29,250 units had completed the conversion process.

The Following Information Pertains to North Company Materials Are Added at the Beginning of the Process