Belegorsk Corporation uses a weighted-average process costing system to collect costs related to production in its Milling Department. The following information relates to Milling Department production for August:
-What are the Milling Department's equivalent units related to conversion costs for August?
A) 43,800
B) 44,200
C) 44,700
D) 48,300

Question

Belegorsk Corporation uses a weighted-average process costing system to collect costs related to production in its Milling Department. The following information relates to Milling Department production for August: 
-What are the Milling Department's equivalent units related to conversion costs for August?
A) 43,800 
B) 44,200 
C) 44,700 
D) 48,300

Quizplus · Accepted Answer

To calculate the equivalent units related to conversion costs, we need to look at the percentage of completion for the units in ending work in process and the units completed and transferred out.

Equivalent units related to conversion costs = Conversion costs of completed units + (Conversion costs in Ending WIP x Percentage of completion)

Conversion costs of completed units = 35,000
Conversion costs in Ending WIP = 13,200

Percentage of completion for Ending WIP:
Materials = 100%
Conversion = 60%

Equivalent units related to conversion costs = 35,000 + (13,200 x 60%) = 44,700

Therefore, the answer is C.

Belegorsk Corporation Uses a Weighted-Average Process Costing System to Collect