Question

Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 1,200 units. The costs and percentage completion of these units in beginning inventory were:

	Cost				Percent Complete
Materials costs	$	6,500				65%
Conversion costs	$	7,600				45%

A total of 8,100 units were started and 6,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

	Cost
Materials costs	$	126,300
Conversion costs	$	207,800

The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.

What are the equivalent units for conversion costs for the month in the first processing department?

Multiple Choice

A. 7,610

B. 6,700

C. 910

D. 9,300

Answer 1

Correct answer----------A. 7,610

Working

Reconciliation of Units
A	Beginning WIP	1,200
B	Introduced	8,100
C=A+B	TOTAL	9,300
D	Transferred out	6,700
E=C-D	Ending WIP	2,600

.

Statement of Equivalent Units(Weighted average)
						Conversion cost
	Units					Complete %	Equivalent units
Transferred out	6,700					100%	6,700
Ending WIP	2,600					35%	910
Total	9,300					Total	7,610