During November, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of November and 110,000 that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of November, 40,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.
-Compute the number of equivalent units with respect to conversion for November using the weighted-average method.
A) 157,000.
B) 83,500.
C) 55,500.
D) 145,000.
E) 185,000.

Question

During November, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of November and 110,000 that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of November, 40,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion. 
-Compute the number of equivalent units with respect to conversion for November using the weighted-average method.
A) 157,000.
B) 83,500.
C) 55,500.
D) 145,000.
E) 185,000.

Quizplus · Accepted Answer

The weighted-average method assigns the equivalent units of production to the units that were completed and transferred out during the period and to the units that are still in process at the end of the period. The equivalent units are calculated by multiplying the number of units by the percentage of completion with respect to the conversion process. In this case, the units that were completed and transferred out during the period were 110,000 units, and they were 100% complete with respect to conversion. Therefore, the equivalent units for these units are 110,000 units. The units that were in process at the end of the period were 40,000 units, and they were 30% complete with respect to conversion. Therefore, the equivalent units for these units are 12,000 units (40,000 units x 30%). The total equivalent units with respect to conversion for November are 110,000 units + 12,000 units = 122,000 units.

During November, the Production Department of a Process Operations System