Haberdashery Company has a beginning Work-in-Process Inventory of 25,000 units (40% complete). During the period, 110,000 units were started and the ending Work-in-Process Inventory consisted of 20,000 units (80% complete). What are the equivalent units for conversion costs using weighted-average process costing? A) 110,000. B) 115,000. C) 121,000. D) 131,000.

total equivalent units are 131,000 units

correct option is D) 131,000

Explanation:

given data

Inventory = 25,000 units

started Inventory = 110000 units

Work-in-Process Inventory = 20,000 units

to find out

equivalent units for conversion costs

solution

we know complete units are started Inventory - Work-in-Process Inventory

complete units = 110,000 - 20,000

complete units = 90,000

and

total units completed before ending work in process is

total units completed before ending work 25,000 + 90,000

total units completed before ending work = 115,000

so

total units completed in ending work in process is 80% of 20,000

total units completed in ending work = 20000 x 0.80

total units completed in ending work = 16,000

so now

total equivalent units are

total equivalent units = 115,000 + 16,000

total equivalent units are 131,000 units

correct option is D) 131,000