The Fox Company uses the weighted average method. The beginning work in process consists of 20,000 units (100% complete as to materials and 50% complete as to conversion costs). The number of units completed during the period was 80,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). Calculate the equivalent units of production with respect to conversion costs.

Question

Business

Reggie

27 October, 09:10

The Fox Company uses the weighted average method. The beginning work in process consists of 20,000 units (100% complete as to materials and 50% complete as to conversion costs). The number of units completed during the period was 80,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). Calculate the equivalent units of production with respect to conversion costs.

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Reese May · Answer 1

EU conversion 82,000

Explanation:

for WA we calcualte equivalent units as comeplted units plus percentage of completion on ending WIP inventory

completed units 80,000

ending WIP inventory

10,000 x 20% = 2,000

EU conversion 82,000

There is not distinction betwene started and comeplted like FIFO because the cost will be calcualte on average. The order on which the units are made does no influence under weighted average method.