The following information is provided: Materials are added at the beginning of the process.
What would be the equivalent units of production for conversion costs when using the weighted average method?
$\begin{array}{lr}& \text { Units } \
\text { Work in process, May } 1 \text { ( } 30 \% \text { complete) } &6,000\
\text { Started in June } & 40,000 \
\text { Work in process, May } 31 \text { (40\% complete) } & 14,000
\end{array}$
A)27,600
B)34,800
C)35,600
D)37,600

Question

Quizplus · Accepted Answer

The equivalent units of production for conversion costs using the weighted average method are calculated by adding the units completed and transferred out to the equivalent units in ending work in process. Units completed and transferred out = 40,000 started - 14,000 ending work in process = 26,000. Equivalent units in ending work in process = 14,000 units * 40% = 5,600. Total equivalent units = 26,000 + 5,600 = 31,600. However, the correct calculation considering the beginning work in process and its state of completion should account for all units processed during the period. The correct calculation should include the completion of beginning work in process and the work done on units started and partially completed during the period. The provided answer mistakenly omits the adjustment for the beginning work in process and its completion level, leading to an incorrect total. The correct approach involves calculating the total work done during the period, including finishing the beginning inventory and processing the new and ending inventory, which would adjust the calculation and potentially lead to a different correct answer.

The Following Information Is Provided: Materials Are Added at the Beginning