Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be:
A) the same as the units completed.
B) less than the units completed.
C) the same as the units started during the period.
D) less than the units started during the period.

Question

Quizplus · Accepted Answer

Under the weighted-average method, the equivalent units of production for conversion costs include both the units completed during the period and the partially complete units in ending work in process inventory. Therefore, the equivalent units will be less than the units started during the period because some of the units are still in process and not yet completed.

Assume There Was No Beginning Work in Process Inventory and the Ending