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g100num [7]
3 years ago
8

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

3,400 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 64,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 25,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs.What were the equivalent units for conversion costs in the Assembly Department for the month?Multiple Choice86,10042,90055,52057,900
Business
1 answer:
salantis [7]3 years ago
4 0

Answer:

57,900 units

Explanation:

For computing the equivalent units for conversion costs , first we have to compute the transferred units which is shown below:

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

= 3,400 units + 64,500 units - 25,000 units

= 42,900 units

Now the equivalent units for conversion costs equal to

=  Transferred units × percentage of completion + ending work in process inventory units × percentage of completion

= 42,900 units × 100% + 25,000 units ×60%

= 42,900 units + 15,000 units

= 57,900 units

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