Baker Corporation uses the weighted-average method in its process costing system

Question

Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,800 units in its beginning work in process inventory that were 90% complete with respect to conversion costs. An additional 93,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 13,000 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

Opening WIP                            8,800

units transfered from prior department   93,000

units accounted for                                  101,800

Units transfere out (101,800- 13,000)   88,800

Closing WIP                                           13,000

units accounted for                               101,800

Completed units transfered out   (100 % completion)   88,800

Closing WIP                                              13,000

Percentage of completion                                                    90

Equivalent unit of closing WIP                                        11,700

Equivalent units for conversion cost in assembly department for the month (88,800 + 11,700) = 100,500

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