This Question: 2 pfs | 50f 10 (0 complete) ? This Quiz: 20 pts possi Boot Compan

Question

This Question: 2 pfs | 50f 10 (0 complete) ? This Quiz: 20 pts possi Boot Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 230 units in process, started 1,430 units, and had 170 units in process at the end of the period. All materials are added at the beginning of the process, and conversion costs are incurred uniformly. The units in process at the end of the month are 60% complete with respect to conversion costs. During the month 1,490 units were completed and transferred out. The department incurred the following costs: (Click on the icon to view the costs ) For conversion costs, the equivalent units of production are O A. 1,660 units O B. 1,592 units OC. 1.430 units O D. 1,490 units

Explanation / Answer

The correct answer is Option (B) i..e. 1,592 units:-

Total equivalent units (conversion costs) = (Number of units completed + (Closing WIP * Percentage of completion))

= (1490 + (170*60%)) = 1,592 units.

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