Heara Ltd manufactures metal sheets, and uses the weighted average method process costing. On 1 May the Rolling Department had 3000 units work in progress, which were 50 per cent completed as to conversion costs. During May 8000 units were completed and transferred out. The remaining work in progress on 30 May was 2000 units, at 50 per cent complete in terms of conversion rate. What is the equivalent unit of conversion?
A) 1000 units
B) 2000 units
C) 7500 units
D) 9000 units

Question

Quizplus · Accepted Answer

The equivalent units of conversion are calculated by adding the units completed and transferred out (8000 units) to the equivalent units in ending work in progress (2000 units * 50% = 1000 units), totaling 9000 units.

Heara Ltd Manufactures Metal Sheets, and Uses the Weighted Average