Data related to Alpha, Inc., for the month of June follows: $\begin{array}{lr}& \text { Units }\
\text { Work in process (WIP), June 1 (40\% complete) } & 16,000\
\text { Started in June } & 80,000 \
\text { Work in process, June } 30 &24,000\
\end{array}$
Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method were 79,200 units, ending work in process on June 30 must have been:
A)70.5 percent complete.
B)30.0 percent complete.
C)45.0 percent complete.
D)25.5 percent complete.

Question

Data related to Alpha, Inc., for the month of June follows: $\begin{array}{lr}& \text { Units }\
\text { Work in process (WIP), June 1 (40\% complete) } & 16,000\
\text { Started in June } &  80,000  \
\text { Work in process, June } 30 &24,000\
\end{array}$
Materials are added at the beginning of the process.
If equivalent units of production for conversion using the weighted average method were 79,200 units, ending work in process on June 30 must have been:
A)70.5 percent complete.
B)30.0 percent complete.
C)45.0 percent complete.
D)25.5 percent complete.

Quizplus · Accepted Answer

The equivalent units of production for conversion using the weighted average method is calculated by adding the units completed during the period to the equivalent units in ending work in process. Given that the equivalent units for conversion are 79,200, and knowing that materials are added at the beginning of the process (meaning all started units are 100% complete for materials upon starting), we can calculate the completion percentage of the ending work in process. The calculation involves the units started and completed during the period (80,000 units started - 24,000 units in ending WIP = 56,000 units completed) plus the work in process at the beginning of the period. Since the equivalent units for conversion are 79,200, and considering the units completed, the ending work in process completion percentage for conversion costs can be determined by the difference, which leads to the calculation that the ending WIP must be 30.0 percent complete.

Data Related to Alpha, Inc Materials Are Added at the Beginning of the Process