The Glove Company uses the weighted average costing method. The beginning Work-in-Process Inventory consists of 25,000 units (100% completed as to materials and 50% complete as to conversion costs). The number of units completed was 100,000. The ending Work-in-Process Inventory consists of 15,000 units (100% complete as to materials and 25% complete as to conversion costs). What would be the equivalent units of production for conversion costs?
A) 40,000
B) 103,750
C) 112,500
D) 116,250

Question

Quizplus · Accepted Answer

Equivalent units of production for conversion costs = Units completed + (Ending WIP units x % complete for conversion)= 100,000 + (15,000 x 25%)= 100,000 + 3,750= 103,750

The Glove Company Uses the Weighted Average Costing Method