Question 18 Bistrol Corporation uses the weighted-average method in its process

Question

Question 18

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were:

Cost      Percent
Complete
Materials costs   $   15,700            75%     
Conversion costs   $   7,700            20%     
A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:

    Cost
Materials costs   $   186,300     
Conversion costs   $   329,800     
The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs.

What are the equivalent units for conversion costs for the month in the first processing department?

      
9,200
      
8,520
      
7,500
      
1,020

Explanation / Answer

Equivalent units for conversion costs = 7500+(1700*60%)= 8520 Option2 is correct

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