Bistrol Corporation uses the weighted-average method in its process costing syst

Question

Bistrol Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs $ 15,700 75% Conversion costs $ 7,700 20% A total of 8,400 units were started and 7,500 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Cost Materials costs $ 186,300 Conversion costs $ 329,800 The ending inventory was 70% complete with respect to materials and 60% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department?

Explanation / Answer

Equivalent units of production: Equivalent units Units accounted for as Material -70% Conversion - 60% Transferred to next department 7500 7500 7500 Ending work in process (800 + 8400-7500) = 1700 ; 1700 x 70% ; 1700 x 60% 1700 1190 1020 Eqivalent units of output 9200 8690 8520

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