Fabert Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 16,000 units in its beginning work in process stock that were 40% complete with respect to conversion costs. An additional 60,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 65,000 units were completed in the Assembly Department and transferred to the next processing department. There were 11,000 units in the ending work in process stock of the Assembly Department that were 50% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the month?

Question

Quizplus · Accepted Answer

To calculate the equivalent units for conversion costs, we need to add the equivalent units from the beginning work in process to the equivalent units from the units started and completed during the month, plus the equivalent units in the ending work in process.

Equivalent units from beginning work in process:

16,000 units × 40% conversion = 6,400 equivalent units

Equivalent units from units started and completed:

60,000 units × 100% conversion = 60,000 equivalent units

Equivalent units from ending work in process:

11,000 units × 50% conversion = 5,500 equivalent units

Total equivalent units for conversion costs:

6,400 + 60,000 + 5,500 = 70,500 equivalent units

Therefore, the answer is B, 70,500.

Fabert Company Uses the Weighted-Average Method in Its Process Costing