Collins Chemicals produces a compound through two processes. For its second process for a particular period, Collins had an opening WIP inventory of 100 units halfway through the process; 2300 units completed in the period; and a closing WIP inventory of 400 units three-quarters of the way through the process. Materials are added at the beginning of the process and conversion costs are incurred uniformly. Calculate the equivalent units for transferred in costs for the period if the firm used weighted average costing.
A) 2300
B) 2500
C) 2600
D) 2700

Question

Quizplus · Accepted Answer

The equivalent units for transferred-in costs under weighted average costing include all units completed and transferred out plus the equivalent units in ending WIP. Thus, 2300 completed units + 400 ending WIP units = 2700 equivalent units.

Collins Chemicals Produces a Compound Through Two Processes