Narver Company uses the weighted-average method in its process costing system.Operating data for the Lubricating Department for the month of October appear below:
What were the equivalent units of production for conversion costs in the Lubricating Department for October?
A) 43,100 units.
B) 37,100 units.
C) 44,780 units.
D) 47,780 units.

Question

Narver Company uses the weighted-average method in its process costing system.Operating data for the Lubricating Department for the month of October appear below: 
What were the equivalent units of production for conversion costs in the Lubricating Department for October?
A) 43,100 units. 
B) 37,100 units. 
C) 44,780 units. 
D) 47,780 units.

Quizplus · Accepted Answer

To calculate the equivalent units of production for conversion costs, we need to add the units completed and transferred out (38,000) to the equivalent units in ending work in process inventory (6,780).

Therefore, equivalent units of production for conversion costs = 38,000 + 6,780 = 44,780.

Option C is the correct answer.

Narver Company Uses the Weighted-Average Method in Its Process Costing