Use the information below to answer the following question(s).Carnival Furniture had 60,000 foam cushions in process at May 1 (70% converted)and 40,000 cushions in process at May 31 (50% converted).All direct materials are added at the beginning of the production process.During the month, 140,000 cushions were transferred to finished goods.
-What is the Carnival Furniture equivalent units for conversion costs for May using the weighted average method?
A)180,000 cushions
B)160,000 cushions
C)140,000 cushions
D)118,000 cushions
E)123,000 cushions

Question

Quizplus · Accepted Answer

To calculate the equivalent units for conversion costs using the weighted average method, we need to take the percentage of completion of the cushions at the beginning and end of the month, calculate the average percentage of completion, and multiply it by the number of cushions. Here's how to do it:

Beginning cushions: 60,000 x 70% = 42,000 equivalent units
Ending cushions: 40,000 x 50% = 20,000 equivalent units
Transferred-in cushions: 140,000 x 100% = 140,000 equivalent units

Total equivalent units: 42,000 + 20,000 + 140,000 = 202,000 equivalent units

Therefore, the Carnival Furniture equivalent units for conversion costs for May using the weighted average method is 160,000 cushions.

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