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In the month of March, a department had 8,000 units in beginning Work in Process that were 75% complete.During March, 30,000 units were transferred into production from another department.At the end of March there were 2,000 units in ending Work in Process that were 75% complete.Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process.The weighted-average method is used.
-How much is the equivalent units of production for conversion costs for March?
A)38,000 equivalent units
B)28,500 equivalent units
C)37,500 equivalent units
D)30,000 equivalent units

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In the month of March, a department had 8,000 units in beginning Work in Process that were 75% complete.During March, 30,000 units were transferred into production from another department.At the end of March there were 2,000 units in ending Work in Process that were 75% complete.Materials are added at the beginning of the process while conversion costs are incurred uniformly throughout the process.The weighted-average method is used.
-How much is the equivalent units of production for conversion costs for March?
A)38,000 equivalent units
B)28,500 equivalent units
C)37,500 equivalent units
D)30,000 equivalent units

Quizplus · Accepted Answer

The equivalent units of production for conversion costs are calculated by adding the units completed and transferred out to the equivalent units in ending work in process. Units transferred out = 30,000 (since 8,000 beginning + 30,000 added - 2,000 ending = 36,000 transferred out). For the ending work in process, 2,000 units are 75% complete for conversion costs, so 2,000 * 75% = 1,500 equivalent units. Therefore, the total equivalent units for conversion costs = 36,000 (transferred out) + 1,500 (ending WIP) = 37,500.

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