Macey Company uses a weighted-average process costing system. Beginning inventory consists of 6,000 units, 40% complete. Units started are 14,000, completed are 10,000, and ending inventories are 9,000 units, 70% complete. Normal spoilage is 5% of the units inspected. Direct material is added at the 75% point and spoilage inspection occurs at the 80% point. The cost per equivalent unit for materials was $1.00 and $3.00 for conversion costs.
Assume actual spoilage was 500 units and ending work in process was 9,500 units. The equivalent units of conversion costs would be:
A) 17,130
B) 17,150
C) 17,050
D) 17,200

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The Answer of Macey Company uses a weighted-average process costing system. Beginning inventory consists of 6,000 units, 40% complete. Units started are 14,000, completed are 10,000, and ending inventories are 9,000 units, 70% complete. Normal spoilage is 5% of the units inspected. Direct material is added at the 75% point and spoilage inspection occurs at the 80% point. The cost per equivalent unit for materials was $1.00 and $3.00 for conversion costs.
Assume actual spoilage was 500 units and ending work in process was 9,500 units. The equivalent units of conversion costs would be:
A) 17,130
B) 17,150
C) 17,050
D) 17,200

Macey Company Uses a Weighted-Average Process Costing System