Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150.
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Calculate the equivalent units of conversion.
A) 144,000
B) 110,000
C) 165,000
D) 140,000
E) 130,250

Question

Quizplus · Accepted Answer

The equivalent units of conversion are calculated by adding the units completed and transferred out (135,000) to the equivalent units in ending inventory (30,000 units * 30% = 9,000), resulting in 144,000 equivalent units of conversion.

Sparky Corporation Uses the Weighted-Average Method of Process Costing