The following information pertains to Southland Company: Units
Work in process, April 1 (20% complete) 8,000
Started in January 40,000
Work in process, April 30 12,000
Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method was 39,000, ending work in process at April 30 must have been

Question

Quizplus · Accepted Answer

To calculate the equivalent units of production for conversion, we need to take into account the units that were started and completed during the period as well as the units that were in process at the beginning and end of the period. Using the weighted average method, we calculate the equivalent units of production as follows:

Units started and completed during the period: 40,000
Units in process at the beginning (20% complete): 8,000 x 20% = 1,600
Equivalent units of production for materials: 40,000 + 1,600 = 41,600
Units in process at the end (X% complete): 12,000 x X%
Equivalent units of production for conversion: 39,000

To solve for X, we can use the equation:

Equivalent units of production for materials + Equivalent units of production for conversion = Total equivalent units of production

41,600 + 39,000 = Total equivalent units of production
80,600 = Total equivalent units of production

Now we can solve for X:

39,000/(12,000 x X%) = 3.25
X% = 12,000 x 1/3.25 = 3,692.31
X% = 30.77% (rounded to the nearest tenth)

Therefore, the ending work in process at April 30 must have been 25.0% complete (100% - 30.77% = 69.23%). The best choice is B.

The Following Information Pertains to Southland Company: Units