Beginning inventory consisted of 10,000 units (20 percent converted) and ending inventory consisted of 20,000 units (40 percent converted). In addition, 60,000 units were started during the period. How many equivalent units for conversion costs were produced using the weighted average method?

Question

Quizplus · Accepted Answer

The equivalent units of production for the beginning inventory = 10,000 x 20% = 2,000 units
The equivalent units of production for the ending inventory = 20,000 x 40% = 8,000 units
The equivalent units of production for the units started during the period = 60,000 x 100% = 60,000 units
Total equivalent units of production = 2,000 + 8,000 + 60,000 = 70,000 units
Using the weighted average method, we calculate the equivalent units of production as the weighted average of the beginning inventory, units started and ending inventory. Therefore,
Equivalent units of production = (10,000 x 20%) + (60,000 x 100%) + (20,000 x 40%) = 2,000 + 60,000 + 8,000 = 58,000 units.

Therefore, the correct answer is D.

Beginning Inventory Consisted of 10,000 Units (20 Percent Converted) and Ending