Question

Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,100 units that were 65% completed. 10,800 units were started into the process during January. On January 31, the inventory consisted of 600 units that were 50% completed. What would be the equivalent units for conversion cost using the weighted average method?

a) 11,200

b)11,600

c) 10,800

d) 11,900

Answer 1

Correct answer----(b) 11600

Working

Reconciliation of Units
A	Opening WIP	1,100
B	Introduced	10,800
C=A+B	TOTAL	11,900
D	Transferred	11,300
E=C-D	Closing WIP	600

Statement of Equivalent Units
		Conversion Cost
	Units	Complete %	Equivalent units
Transferred	11,300	100%	11,300
Closing WIP	600	50%	300
Total	11,900	Total	11,600