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andrey2020 [161]
3 years ago
11

Baker Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with

13,800 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 20,500 units in the ending work in process inventory of the Assembly Department that were 80% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month?
a. 101,700
b. 93,660
c. 104,700
d. 88,300
Business
1 answer:
Andreas93 [3]3 years ago
8 0

Answer:

c. 104,700

Explanation:

The computation of the  equivalent units for conversion costs in the Assembly Department for the month is shown below:

= Units completed × completion percentage + ending work in process inventory units × completion percentage

= 88,300 units × 100% + 20,500 units × 80%

= 88,300 units + 16,400 units

= 104,700 units

The completed units would be

= Beginning work in process inventory units +  transferred units - ending work in process inventory units

= 13,800 units + 95,000 units - 20,500 units

= 88,300 units

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