Question

assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be

Answer 1

Answer:

less that the units started in production period

Explanation:

Equivalent units are different from the physical units manufactured. Equivalent units are outputs expressed as percentage of costs applied and completion on them.

For Weighted Average method, equivalent units are calculated by looking at the Units in Work In Process and Units Completed and Transferred.

Therefore, for equivalent units of production with respect to conversion costs

Express the  Units in Work In Process to their equivalent units by multiplying by 70% (percentage of completion) and add the amount to the Units Completed and Transferred. The total is the equivalent units of production with respect to conversion costs.

If there is no beginning work in process inventory, the sum of the above will be less that the units started in production period