Fabian Company uses the weighted-average method in its process costing system.The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs.An additional 90,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.During the month 87,000 units were completed in the Assembly Department and transferred to the next processing department.There were 12,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?
A) 83,100.
B) 87,100.
C) 89,400.
D) 93,000.

Question

Quizplus · Accepted Answer

Equivalent units of production for conversion costs = equivalent units of production for beginning work in process inventory + equivalent units of production for units started and completed during the period + equivalent units of production for ending work in process inventory

Equivalent units of production for beginning work in process inventory = 9,000 units x 70% = 6,300 
Equivalent units of production for units started and completed during the period = 90,000 units 
Equivalent units of production for ending work in process inventory = 12,000 units x 20% = 2,400

Total equivalent units of production for conversion costs = 6,300 + 90,000 + 2,400 = 89,400

Fabian Company Uses the Weighted-Average Method in Its Process Costing