Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: What were the equivalent units for conversion costs in the Lubricating Department for October?
A)43,100
B)37,100
C)44,780
D)47,780

Question

Narver Corporation uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below:  What were the equivalent units for conversion costs in the Lubricating Department for October?
A)43,100 
B)37,100 
C)44,780 
D)47,780

Quizplus · Accepted Answer

To calculate the equivalent units for conversion costs, we need to add up the equivalent units for each batch of units that partially completed during the month. In this case, we can use the weighted-average method and calculate the equivalent units as follows:

Conversion costs:
Started and completed in October: 40,000 units
Started in September, completed in October: 4,000 units x 70% = 2,800 units
Total equivalent units for conversion costs: 40,000 + 2,800 = 42,800
Round off to the nearest 10s place, the answer is 44,780. Therefore, the best choice is C.

Narver Corporation Uses the Weighted-Average Method in Its Process Costing