Question

uses the weighted-average method in its process costing system. In their first processing department, the company worked on 1,050 equivalent units of production with respect to conversion costs in April. Additional information for April is: Beginning inventory 230 units 40% complete Started 1,345 units Completed and transferred out 700 units Q: The % of completion of the ending inventory in work-in-process with respect to conversion cost is:

Answer 1

Answer:

The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.

Explanation:

First Calculate the Physical units in Ending Work in Process Inventory.

Physical units in Ending Work in Process Inventory = Beginning Work in Process inventory + Started Units - Units Completed and transferred out

Thus, Ending Work in Process Inventory = 230 +  1,345 - 700

                                                                   = 875

Then, Calculate the Equivalent Units of Ending Work in Process Inventory.

Total equivalent units of production - conversion costs 1,050

Less Units Completed and transferred out                       (700)

Equivalent Units of Ending Work in Process Inventory     350

Finally Calculate the % of completion of the ending inventory in work-in-process with respect to conversion cost

The % of completion = Equivalent units of Ending Work in Process Inventory/ Physical units in Ending Work in Process Inventory × 100

                                  = 350 / 875 × 100

                                  = 40%