(CO B) Maverick Corporation uses the weighted-average method in its process cost

Question

(CO B) Maverick Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.

Required: Calculate the equivalent units for conversion for the month in the first processing department.

Work in process, beginning: Units in beginning work in process inventory 400 Materials costs $6,900 Conversion costs $2,500 Percent complete for materials 80% Percent complete for conversion 15% Units started into production during the month 8,000 Units transferred to the next department during the month 7,500 Materials costs added during the month $112,500 Conversion costs added during the month $210,300 Ending work in process: Units in ending work-in-process inventory 900 Percentage complete for materials 70% Percentage complete for conversion 45%

Explanation / Answer

As per weighted average method, Equivalent units of production = Units completed + Ending units *Percentage of completion So, Equivalent units of conversion = Units completed + Ending units *Percentage of completion = 7500 + 900*45% = 7500 + 405 7905 Thus, Equivalent units of conversion 7905 Units

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