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19 May, 05:46

Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 3,400 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 64,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 25,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.

What were the equivalent units for conversion costs in the Assembly Department for the month?

a. 86,100

b. 42,900

c. 55,520

d. 57,900

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Answers (1)
  1. 19 May, 06:00
    0
    Option (d) is correct.

    Explanation:

    Units transferred to the next department:

    = Units in beginning work in process + Units started into production - Units in ending work in progress inventory

    = 3,400 units + 64,500 units - 25,000 units

    = 42,900 units

    conversion ending work in process:

    = 60% of 25,000 units

    = 15,000

    Equivalent units for conversion costs in the Assembly Department for the month:

    = Units transferred to the next department + Conversion ending work in process

    = 42,900 units + 15,000 units

    = 57,900 units
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