Baker Corporation uses the weighted-average method in its process costing system
ID: 2422884 • Letter: B
Question
Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 14,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 96,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 21,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?
Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 14,000 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 96,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 21,000 units in the ending work in process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?
Explanation / Answer
Calculation of equivalent units for conversion costs in the Assembly Department for the month:
(Using the weighted-average method)
Units in beginning work in process inventory
14000
Units transferred in
96000
Units in Ending work in process inventory
21000
Units Started and completed during the month = 96000-21000 =
75000
Units in Ending work in process inventory
21000
Percentage of complete with respect to conversion costs
90%
Equivalent units of ending inventory for conversion = 21000*90% =
18900
Total equivalent units for conversion costs in the Assembly Department for the month = 75000+ 18900 =
93900
Calculation of equivalent units for conversion costs in the Assembly Department for the month:
(Using the weighted-average method)
Units in beginning work in process inventory
14000
Units transferred in
96000
Units in Ending work in process inventory
21000
Units Started and completed during the month = 96000-21000 =
75000
Units in Ending work in process inventory
21000
Percentage of complete with respect to conversion costs
90%
Equivalent units of ending inventory for conversion = 21000*90% =
18900
Total equivalent units for conversion costs in the Assembly Department for the month = 75000+ 18900 =
93900
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