The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory - 0 - Units started in production 20,000 Units finished during the period 16,000 Units in process at the end of the period (complete as to materials, ¼ complete as to conversion) 4,000 Cost of materials used $35,200 Conversion costs $37,400 Equivalent units of production for conversion are:

Question

Business

Cecelia Douglas

2 July, 10:57

The Lakeside Company uses a weighted-average process costing system. The following data are available: Beginning inventory - 0 - Units started in production 20,000 Units finished during the period 16,000 Units in process at the end of the period (complete as to materials, ¼ complete as to conversion) 4,000 Cost of materials used $35,200 Conversion costs $37,400 Equivalent units of production for conversion are:

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Zachery Henson · Answer 1

Total total equivalent units for conversion are 17,000

Explanation:

Materials:

cost: 35,200

complete units 16,000

WIP 4,000 100%

BI 0

Total Units 20,000

Material Cost per unit : 1.76

Conversion

cost 37,400

Equivalent Units

The complete units count entirely. The WIP units work as much as process they receive. Finally there are no beginning inventory units

complete units 16,000

WIP 4,000 x 1/4 = 1,000

BI 0

Total equivalent units 17,000

37,400/17,000 = 2.2

Conversion cost per unit: 2.22

Equivalent unit cost: 1.76 + 2.22 = 3.98