Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: What are the equivalent units for conversion costs for the month in the first processing department?
A) 6,100
B) 700
C) 6,800
D) 7,500

Question

Haffner Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:  What are the equivalent units for conversion costs for the month in the first processing department?
A) 6,100 
B) 700 
C) 6,800 
D) 7,500

Quizplus · Accepted Answer

The equivalent units for conversion costs can be calculated by adding the equivalent units of the units completed and transferred out and the equivalent units in ending work-in-process inventory. Using the weighted-average method, the equivalent units of the units completed and transferred out are 6,100 and the equivalent units in ending work-in-process inventory are 700. Therefore, the total equivalent units for conversion costs are 6,100 + 700 = 6,800.

Haffner Corporation Uses the Weighted-Average Method in Its Process Costing