Bims Corporation uses the weighted-average method in its process costing system.The Assembly Department started the month with 2,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs.An additional 61,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 18,000 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?

A) 45,000
B) 77,000
C) 54,400
D) 55,800

Question

Estefani Moreno · Accepted Answer

Final Answer : D, Explanation :  To calculate the equivalent units for conversion costs in the Assembly Department for the month, we need to first calculate the equivalent units of production for both beginning work in process inventory and units transferred in from the prior department:Equivalent units for beginning work in process inventory = 2,000 units x 70% completion = 1,400 unitsEquivalent units for units transferred in = 61,000 unitsTotal equivalent units for conversion costs = 1,400 units + 61,000 units + 18,000 units x 60% completion = 55,800 units.Therefore, the correct answer is D, 55,800. Weighted-average methodUnits transferred to the next department = Units in beginning work in process + Units started into production - Units in ending work in process = 2,000 + 61,000 - 18,000 = 45,000

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