Answer the following questions using the information below:
Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 50% complete. It has 200 units which are 25% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method.
-Calculate the total equivalent units in ending inventory for assignment of conversion costs?
A) 25 units
B) 50 units
C) 150 units
D) 200 units

Question

Quizplus · Accepted Answer

To find out the total equivalent units in ending inventory for assignment of conversion costs, we need to calculate the equivalent units of production for the 200 units that are 25% complete at the end of the month. 
Equivalent units = Units in ending inventory × Percentage completion 
Equivalent units = 200 units × 25% 
Equivalent units = 50 units 
Therefore, the total equivalent units in ending inventory for assignment of conversion costs is 50 units.

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