Question 9 (2 points) Carrington Corporation produces canned vegetable soup. The

Question

Question 9 (2 points) Carrington Corporation produces canned vegetable soup. The company uses the weighted-average method in its process costing system. The company sold 300,000 units in January. Data concerning inventories follow Inventory at January 1: Work in process None 75,000 units Finished goods Inventory at January 31: Work in process (75% complete with respect to conversion costs) Finished goods 24,000 units 60,000 units What were the equivalent units for conversion costs for January? ? ?T000 units. O 303,000 units O300,000 units 309,000 units Save

Explanation / Answer

Solution: Answer is 2nd option 303,000 units Working Notes: 100% complete for conversion cost the units that are complete Units that produced during the period = Units sold + Units of finished Ending - Beginning units of Finished =300,000+60,000-75,000 =285,000 units And work in process at ending is 24,000 units but for conversion costs is 75% only. For conversion Equivalent units = 75% of Ending Work in process + Units that produced during the period =75% x 24,000 + 285,000 =18,000+285,000 =303,000 units Please feel free to ask if anything about above solution in comment section of the question.

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