Sparky Corporation uses the weighted-average method of process costing. The foll

Question

Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:

Units:
Beginning Inventory: 38,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 136,000.
Units completed and transferred out: 174,000.
Ending Inventory: 36,500 units, 100% complete as to materials and 25% complete as to conversion.

Costs:
Costs in beginning Work in Process - Direct Materials: $56,000.
Costs in beginning Work in Process - Conversion: $61,850.
Costs incurred in February - Direct Materials: $300,000.
Costs incurred in February - Conversion: $612,150.

Calculate the equivalent units of conversion.

Multiple Choice

210,500

141,175

136,000

183,125

99,500

Explanation / Answer

D.183,125.

equvalent units of conversion

= units transferred out + ending inventory * (percentage completion as to conversion)

=> 174,000+ 36,500 * (25%)

=>174,000 + 9,125

=>183,125.

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