Bims Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 2,000 units in its beginning work in process stock that were 70% complete with respect to conversion costs. An additional 61,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 18,000 units in the ending work in process stock of the Assembly Department that were 60% 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

The equivalent units for conversion costs are calculated by adding the units completed and transferred out to the equivalent units in ending work in process. Units completed and transferred out = 61,000 units started - 18,000 units in ending WIP = 43,000 units. Equivalent units in ending WIP = 18,000 units * 60% = 10,800 units. Equivalent units for beginning WIP = 2,000 units * 30% (since they were already 70% complete) = 600 units. Total equivalent units = 43,000 (completed and transferred out) + 10,800 (ending WIP) + 600 (beginning WIP) = 54,400 units. However, the calculation mistake in considering the beginning WIP's conversion progress leads to the correct adjustment and final answer, which is not directly provided in the options, indicating a need to reevaluate the calculation or the understanding of the question's requirements.

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