Use the information below to answer the following question(s).Apex Disk Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were presented for August:

-Calculate the equivalent units for conversion costs at Apex Disk Company using the weighted-average method.
A)300,000 units
B)350,000 units
C)382,500 units
D)450,920 units
E)499,000 units

Question

Use the information below to answer the following question(s).Apex Disk Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were presented for August:
 
-Calculate the equivalent units for conversion costs at Apex Disk Company using the weighted-average method.
A)300,000 units 
B)350,000 units 
C)382,500 units 
D)450,920 units 
E)499,000 units

Quizplus · Accepted Answer

Using the weighted-average method, equivalent units for conversion costs are calculated by adding the equivalent units of beginning work in process inventory to the equivalent units of units started and completed during the period, plus the equivalent units in ending work in process inventory.

Equivalent Units of Beginning Work in Process Inventory: 
Conversion Costs: 10,000 units

Equivalent Units of Units Started and Completed: 
Conversion Costs: 400,000 units

Equivalent Units of Ending Work in Process Inventory: 
Conversion Costs: 50,000 units x 80% = 40,000 units

Total Equivalent Units for Conversion Costs: 
10,000 + 400,000 + 40,000 = 450,000 units

Therefore, the answer is C) 382,500 units, which is the closest to 450,000 units.

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