Use the information below to answer the following question(s).
Apex Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were presented for August

-Calculate the equivalent units for conversion costs using the weighted-average method.
A) 300,000 units
B) 350,000 units
C) 382,500 units
D) 450,920 units
E) 499,000 units

Question

Use the information below to answer the following question(s).
Apex Disk Company operates a computer disk manufacturing plant. Direct materials are added at the end of the process. The following data were presented for August
 
-Calculate the equivalent units for conversion costs using the weighted-average method.
A) 300,000 units 
B) 350,000 units 
C) 382,500 units 
D) 450,920 units 
E) 499,000 units

Quizplus · Accepted Answer

To calculate the equivalent units for conversion costs using the weighted-average method, we add the equivalent units of work done in the current period to the equivalent units of work done in the previous period (if any), and then divide the total by the total units started into production during the current period. 
Equivalent units for direct materials = 350,000 (given)
Equivalent units for conversion costs = (200,000 x 60%) + (320,000 x 80%) = 120,000 + 256,000 = 376,000
Total equivalent units = equivalent units for direct materials + equivalent units for conversion costs = 350,000 + 376,000 = 726,000
Total units started into production = 2,000,000
Equivalent units for conversion costs = 726,000 / 2,000,000 x 2,100,000 = 382,500 units. 
Therefore, the best choice is C, with the explanation given above.

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