Clap Company uses the? weighted-average method in its process costing system. Th
ID: 2412907 • Letter: C
Question
Clap Company uses the? weighted-average method in its process costing system. The Packaging Department started the month with 210 units in? process, started 1,490 ?units, and had 100 units in process at the end of the period. All materials are added at the beginning of the? process, and conversion costs are incurred uniformly. The units in process at the end of the month are 50?% complete with respect to conversion costs. During the month 1,600 units were completed and transferred out. The department incurred the following? costs:
Beginning WIP
Added this month
Total
Direct Materials
$400
$2,600
$3,000
Conversion Costs
600
6,150
6,750
Total
$1,000
$8,750
$9,750
For conversion? costs, the equivalent units of production are
A. 1,490 units
B. 1,600 units
C. 1,650 units
D. 1,700 units
Beginning WIP
Added this month
Total
Direct Materials
$400
$2,600
$3,000
Conversion Costs
600
6,150
6,750
Total
$1,000
$8,750
$9,750
Explanation / Answer
Units transferrred out = 1600 Units
Equivalent unit = Units transferred out+(ending work in process*percentage completion)
= 1600+(100*50%)
Equivalent unit of conversion = 1650
So answer is c) 1650 Units