Natraj Corporation uses the weighted-average method in its process costing syste

Question

Natraj 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) 41,220

(b) 38,400

(c) 37,800

(d) 41,520

Units Percent complete with with Respect to Conversion Begining Work in Process Inventory 5,400 20% Transferred in from the prior department during October 38,100 Completed and transferred to the next department during October 37,800 Ending work in process inventory 5,700 60%

Explanation / Answer

Total equivalent units = units transferred to next department + units in closing WIP * % of completion with respect to relevant cost component

= 38,100 + 5,700*60%

= 38,100+3,420

= 41,520

Hence the answer is "d" - 41,520.

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.