Asked by Spiro Billos on Apr 26, 2024
Verified
Calculate the equivalent units of conversion.
A) 250,000
B) 317,000
C) 294,000
D) 333,000
E) 342,000
Weighted-Average Method
An inventory costing method that assigns costs based on the average cost of all units available during the period.
Equivalent Units
A concept used in cost accounting to convert partially completed goods into the equivalent of full units of output, facilitating consistency in financial reporting and analysis.
Fabricating Department
A division within a manufacturing company dedicated to the construction and assembly of the parts required to produce a finished product.
- Derive the equivalent units for production using the weighted average strategy.
- Fathom the significance and calculation approach for direct materials, conversion costs, and equivalent units in the realm of process costing.
Verified Answer
Units started and completed: 250,000
Ending inventory (30,000 x 10%): 3,000
Total equivalent units of conversion: 253,000
Therefore, the equivalent units of conversion are 253,000, and the best choice is D.
Learning Objectives
- Derive the equivalent units for production using the weighted average strategy.
- Fathom the significance and calculation approach for direct materials, conversion costs, and equivalent units in the realm of process costing.
Related questions
Compute the Equivalent Units for Direct Materials and Conversion Respectively ...
Calculate the Equivalent Units of Conversion
At the Beginning of the Month,the Forming Department of Martin ...
Mccabe Corporation Uses the Weighted-Average Method in Its Process Costing ...
Bachelet Incorporated Uses the Weighted-Average Method in Its Process Costing ...