Asked by Hannah Strength on Jul 15, 2024
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Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 2,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 61,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 18,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?
A) 45,000
B) 77,000
C) 54,400
D) 55,800
Conversion Costs
The sum of labor and overhead expenses incurred in the process of transforming raw materials into finished goods.
Weighted-Average Method
An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.
Assembly Department
The section of a manufacturing plant where components are put together to form a finished product.
- Comprehend the principles of similar units for materials and the costs of conversion in process costing.
- Master the calculation of the cost per equivalent unit for conversion costs in diverse settings.
Verified Answer
Learning Objectives
- Comprehend the principles of similar units for materials and the costs of conversion in process costing.
- Master the calculation of the cost per equivalent unit for conversion costs in diverse settings.
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