Assume that there is no beginning work-in-process inventory,and the ending work-in-process inventory is 50% complete with respect to conversion costs.What would be the number of equivalent units of production with respect to conversion costs under the weighted-average method?
A) The same as the units completed.
B) The same as the units started during the period.
C) Less than the units completed.
D) Less than the units started during the perioD.

Question

Quizplus · Accepted Answer

Under the weighted-average method, the equivalent units of production with respect to conversion costs are calculated by adding together the equivalent units completed during the period and the equivalent units in the ending work-in-process inventory, which is assumed to be 50% complete. Since there is no beginning work-in-process inventory, the equivalent units started during the period will be equal to the units completed, but less than the units started, because there is ending work-in-process inventory. Therefore, the answer is D.

Assume That There Is No Beginning Work-In-Process Inventory,and the Ending