question archive Bims Corporation uses the weighted-average method in its process costing system
Bims Corporation uses the weighted-average method in its process costing system
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Bims Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 3,600 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 65,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 26,000 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?
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42,600
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87,400
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55,680 - ???
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58,200
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Units completed and transferred= Units in beginning work in process+Units started-Units in ending work in process
= 3,600+65,000-26,000
= 42,600
| Conversion | |
| Units completed and transferred | 42,600 |
| Ending work in process (26,000*60%) | 15,600 |
| Equivalent units for conversion costs | 58,200 |
So, the answer is option D) 58,200
