Figure 6-13
Wonder Paints Corporation's Mixing Department began August 2016 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).
-Refer to Figure 6-13. If materials were added at the beginning of the process, how many equivalent units of production for conversion costs would there be for Wonder Paints using the weighted average costing method?

Question

Quizplus · Accepted Answer

The equivalent units for conversion costs using the weighted average method are calculated by adding the units completed and transferred out to the equivalent units in ending inventory. Here, 95,000 units were completed and transferred out (10,000 beginning inventory + 100,000 started - 15,000 ending inventory), and the ending inventory equivalent units are 15,000 * 70% = 10,500. Thus, the total equivalent units for conversion costs are 95,000 + 10,500 = 105,500 units.

Figure 6-13 Wonder Paints Corporation's Mixing Department Began August 2016 with 10,000