Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow:$\begin{array} {| l | r | r | }
\hline & \text { Number of Units } & \begin{array} { r }
\text { Conversion costs } \
\text { percentage complete }
\end{array} \
\hline \begin{array} { l }
\text { Beginning work in process } \
\text { inventory }
\end{array} & 11,000 & 35 \% \
\hline \begin{array} { l }
\text { Units started into } \
\text { production }
\end{array} & 120,000 & \
\hline \begin{array} { l }
\text { Units completed and } \
\text { transferred out }
\end{array} & 114,000 & 30 \% \
\hline \begin{array} { l }
\text { Ending work in process } \
\text { inventory }
\end{array} & 17,000 & \
\hline
\end{array}$
The beginning work-in-process inventory included $11,000 of conversion cost. During the month, the Refining Department incurred an additional $290,000 in conversion costs.

-Assuming that the company uses the weighted-average cost method,what are the equivalent units of production for conversion costs for the Refining Department for the month?
A) 119,100 units.
B) 120,000 units.
C) 114,000 units.
D) 131,000 units.

Question

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow:$\begin{array} {| l | r | r | } 
\hline & \text { Number of Units } & \begin{array} { r } 
\text { Conversion costs } \
\text { percentage complete }
\end{array} \
\hline \begin{array} { l } 
\text { Beginning work in process } \
\text { inventory }
\end{array} & 11,000 & 35 \% \
\hline \begin{array} { l } 
\text { Units started into } \
\text { production }
\end{array} & 120,000 & \
\hline \begin{array} { l } 
\text { Units completed and } \
\text { transferred out }
\end{array} & 114,000 & 30 \% \
\hline \begin{array} { l } 
\text { Ending work in process } \
\text { inventory }
\end{array} & 17,000 & \
\hline
\end{array}$
The beginning work-in-process inventory included $11,000 of conversion cost. During the month, the Refining Department incurred an additional $290,000 in conversion costs.

-Assuming that the company uses the weighted-average cost method,what are the equivalent units of production for conversion costs for the Refining Department for the month?
A) 119,100 units.
B) 120,000 units.
C) 114,000 units.
D) 131,000 units.

Quizplus · Accepted Answer

The equivalent units of production for conversion costs using the weighted-average cost method are calculated by adding the units completed and transferred out to the equivalent units of work in process at the end of the period, taking into account the percentage completion of those work in process units in terms of conversion costs. The correct answer, A) 119,100 units, suggests that this number was derived by applying the weighted-average method to the given data, considering both completed units and the conversion completion percentage of the units still in process.

Information About Units Processed and Processing Costs Incurred During a Recent