Jam Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:
Beginning work in process inventory 6,800 units which are 40 percent complete in respect to conversion. Transferred in from the prior department during April 74,900 and Ending work in process inventory 4,200 which is 90 percent complete.
What were the equivalent units for conversion costs in the Painting Department for April?
a. 78,680
b. 77,500
c. 72,300
Selected: d. 81,280 This answer is correct.
Correct! Units in beginning inventory 6,800 plus units started into production 74,900 less units in ending inventory 4,200 equals units transferred out 77,500. Equivalent units transferred out 77,500 plus equivalent units in the ending work in process inventory 3,780 which are 4,200 units that are 90 percent complete equals 81,280 equivalent units for conversion costs.