Industrial Supply Corporation uses the weighted-average method in its process co
ID: 2415396 • Letter: I
Question
Industrial Supply Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.
Work in process, beginning:
Units in beginning work in process inventory
400
Materials costs
$6,900
Conversion costs
$2,500
Percent complete for materials
80%
Percent complete for conversion
15%
Units started into production during the month
6,000
Units transferred to the next department during the month
5,200
Materials costs added during the month
$112,500
Conversion costs added during the month
$210,300
Ending work in process:
Units in ending work-in-process inventory
1,200
Percentage complete for materials
75%
Percentage complete for conversion
30%
Required: Calculate the equivalent units for conversion for the month in the first processing department.
Work in process, beginning:
Units in beginning work in process inventory
400
Materials costs
$6,900
Conversion costs
$2,500
Percent complete for materials
80%
Percent complete for conversion
15%
Units started into production during the month
6,000
Units transferred to the next department during the month
5,200
Materials costs added during the month
$112,500
Conversion costs added during the month
$210,300
Ending work in process:
Units in ending work-in-process inventory
1,200
Percentage complete for materials
75%
Percentage complete for conversion
30%
Explanation / Answer
Reconciliation of Units Particulars Units Beginning 400 Transferred in 6,000 6,400 Transferred Out 5,200 Closing 1,200 6,400 Equivalent Units Particulars Units % Equivalent Units Opening Conversion cost 2,500 85% 2,125 During the year 5,200 100% 5,200 Closing Convsersion Cost 1,200 30% 360 Equivalent Units 8,900 7,685 So Equivalent Units for Conversion Cost is 7,685