The Assembly Department of Binary, Inc., a manufacturer of computers, had a begi

Question

The Assembly Department of Binary, Inc., a manufacturer of computers, had a beginning inventory of 5,000 units. During November, it assembled 6,000 units and transferred them to the Packaging Department. It incurred $250,000 in direct materials and $75,000 in conversion costs. The ending inventory in November was 3,000 units, which were 100% and 60% complete with respect to materials and conversion costs, respectively. Calculate the total equivalent units of production for conversion costs for November. The weighted - average method is used OA. 1,800 units OB. 7,800 units OC. 6,000 units OD. 9,000 units

Explanation / Answer

The correct answer is option (B) i.e. 7,800 units Equivalent unit of production for conversion cost = (6,000*100%) + (3,000*60%) = 7,800 units The correct answer is option (A) i.e. 19,000 units Units to be accounted for = (7,000+12,000) = 19,000 units

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