Myrna's Manufacturing has 6,000 units in beginning Work in Process, 15% complete as to conversion costs, 15,000 units transferred out to Finished Goods, and 2,000 units in ending Work in Process 10% complete as to conversion costs.Materials are fully added at the beginning of the process.How much are equivalent units for conversion costs if the weighted-average method is used?
A)15,700
B)15,200
C)14,300
D)13,900

Question

Quizplus · Accepted Answer

To calculate equivalent units using the weighted-average method, we need to combine the units in beginning Work in Process with the units added during the period and calculate the equivalent units for both materials and conversion costs.
Equivalent units for conversion costs:
Units in beginning WIP = 6,000 x 15% = 900
Units started and completed during the period = 15,000
Units in ending WIP = 2,000 x 10% = 200
Equivalent units for conversion costs = 900 + 15,000 + 200 = 15,100
However, since the ending Work in Process is not 100% complete, we need to adjust this calculation by multiplying the ending WIP units by their percentage of completion for conversion costs:
Adjustment for ending WIP = 2,000 x 10% = 200
Equivalent units for conversion costs = 15,100 + 200 = 15,300
Therefore, the answer is B) 15,200.

Myrna's Manufacturing Has 6,000 Units in Beginning Work in Process