Question

Betty DeRose, Inc. operates two departments, the handling department and the packaging department. During April, the handling department reported the following information: % complete DM % complete conversion 71% 38% work in process, April 1 units started during April work in process, April 30 units 18,000 80,000 44,000 28% 74% The cost of beginning work in process and the costs added during April were as follows: DM work in process, April 1 costs added during April total costs $ 64,996 190,336 255,332 Conversion $152,785 232,407 385,192 Total cost $217,781 422,743 640,524 Calculate the equivalent units with respect to conversion costs using the weighted average process costing method.

Answer 1

Equivalent units for conversion cost = 86,560

Working

Reconciliation of Units
A	Beginning WIP	18,000
B	Introduced	80,000
C=A+B	TOTAL	98,000
D	Transferred out	54,000
E=C-D	Ending WIP	44,000

.

Statement of Equivalent Units(Weighted average)
						Conversion cost
	Units					Complete %	Equivalent units
Transferred out	54,000					100%	54,000
Ending WIP	44,000					74%	32,560
Total	98,000					Total	86,560