Sparky Corporation uses the weighted-average method of process costing. The foll

Question

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:

Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
  
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000.
Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000.
Costs incurred in February - Conversion: $599,150.

Calculate the equivalent units of conversion.

Explanation / Answer

Calculation of equivalent units of conversion.

Beginning Inventory: 25,000 units,
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units (30% complete as to conversion)

Total equivalent units of conversion = 1,10,000 + (30,000 × 30% ) = 1,19,000 Units

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