Question

rporation uses the weighted-average method in its process costing system. The Assembly Department started the its beginning work in process inventory that were 70% complete with respect to conversion costs. month with 2,800 units in An additional 63,000 u Assembly Department. There were 22,000 unit were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? nits were transferred in from the prior department during the month to begin processing in the s in the ending work in process inventory of the Assembly Department that Multiple Choice 57,000 43,800

Answer 1

Ans. 57,000 units.

Explanation;

Step 1: We should prepare schedule of units to know the “number of units transferred out”, since this is not given in the question.

            Schedule of Quantity (In Units) for Assembly Department

Beginning of the Month	2,800 units
Add: Transferred in	63,000 units
Units to be accounted for	65,800 units
Less: Ending of the month	22,000 units
Transferred out	43,800 units

Step 2: Prepare schedule of equivalent units to know the equivalent units for conversion cost in the Assembly department for the month.

                           Calculation of Equivalent units for Assembly Department

	Transferred In	Conversion costs
Transferred out (a)	43,800 units	43,800 units
Units at ending of the month (b)	22,000 units	22,000 units
Percentage of completion at end of the Month (c)	100%	60%
Equivalent units at end of the month (d) = (b*c)	22,000 units	13200, units
Total equivalent units (a)+(d)	65,800 units	57,000 units

Therefore, the equivalent units for conversion cost in the Assembly department for the month is 57,000 units.