Jawson Corporation uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below: What were the equivalent units for conversion costs in the Painting Department for April?
A)67,300
B)68,820
C)70,520
D)63,900

Question

Jawson Corporation uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:  What were the equivalent units for conversion costs in the Painting Department for April?
A)67,300 
B)68,820 
C)70,520 
D)63,900

Quizplus · Accepted Answer

To calculate equivalent units for conversion costs, we need to consider the units that were partially completed (i.e., in process) as well as the units that were completed during the month. According to the given data, 45,000 units were started and 10,000 units were in ending inventory with 35,000 units completed and transferred to the next department.

Using the weighted-average method, we calculate the equivalent units for conversion costs as follows:

Equivalent units for conversion costs = Units completed and transferred out + Equivalent units in ending work in process inventory

Equivalent units for conversion costs = 35,000 + (10,000 x 40%) = 35,000 + 4,000 = 39,000

Therefore, the correct answer is C) 70,520.

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