The M & M Manufacturing Company uses the weighted average method. The beginning work in process consists of 10,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 100,000. The ending work in process consists of 15,000 units (100% complete as to materials and 20% complete as to conversion costs).
-Refer to the Figure.What were the equivalent units of production for conversion costs?
A)103,000
B)108,000
C)110,000
D)150,000

Question

Quizplus · Accepted Answer

The equivalent units of production for conversion costs are calculated by adding the completed units' conversion costs to the conversion costs for the ending work in process. The completed units are 100,000, which are 100% complete for conversion costs, so they contribute 100,000 equivalent units. The ending work in process consists of 15,000 units, which are 20% complete as to conversion costs, contributing 15,000 * 20% = 3,000 equivalent units. Therefore, the total equivalent units for conversion costs are 100,000 (from completed units) + 3,000 (from ending work in process) = 103,000 equivalent units.

The M & M Manufacturing Company Uses the Weighted Average