Binsder Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. An additional 55,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 10,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the month?
a. 54,000
b. 56,000
Selected: c. 59,000 This answer is correct.
d. 55,400
Correct! Beginning work in process 9,000 plus units started into production 55,000 less ending work in process 10,000 equals units completed and transferred 54,000. Transferred to next department 54,000 plus ending work in process 5,000 which is 10,000 units at 50 percent which equals 59,000 equivalent units of production.