Carbamate Manufacturing produces a pesticide chemical and uses process costing.There are three processing departments-Mixing,Refining,and Packaging.On January 1,the Refining Department had 2000 gallons of partially processed product in production.During January,30,000 gallons were transferred in from the Mixing Department,and 29,000 gallons were completed and transferred out.At the end of the month,3000 gallons of partially processed product remained in the Refining Department.The weighted-average method is used.See additional details below. Refining Department,ending balance at January 31
leercent completed for materials cost: $92\%$
Percent completed for conversion cost: $70 \%$ What was the total number of equivalent units of production for conversion costs for the month of January for the Refining Department?

Question

Quizplus · Accepted Answer

To calculate equivalent units of production for conversion costs, we need to consider the partially completed units at the beginning of the month, the units completed during the month, and the partially completed units at the end of the month. Using the weighted-average method, we calculate equivalent units as follows:

Units in beginning WIP inventory (partially completed): 2,000
Units transferred in: 30,000
Total units accounted for: 32,000
Equivalent units of production for units completed during the month: 29,000
Equivalent units of production for ending WIP inventory (partially completed): (3,000 x 80%) = 2,400
Total equivalent units of production for conversion costs: 29,000 + 2,400 = 31,400

Therefore, the answer is B.

Carbamate Manufacturing Produces a Pesticide Chemical and Uses Process Costing 92%92\%92%

Carbamate Manufacturing Produces a Pesticide Chemical and Uses Process Costing $92\%$