Eastern Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: cost Percent complete Materials costs $3,900 65% Conversion costs $10,200 35% A total of 5,700 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $44,800 Conversion costs $206,900 The ending inventory was 75% complete with respect to materials and 20% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department? 5,020 6,300 4,700 320
Eastern Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 600 units. The costs and percentage completion of these units in beginning inventory were: cost Percent complete Materials costs $3,900 65% Conversion costs $10,200 35% A total of 5,700 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $44,800 Conversion costs $206,900 The ending inventory was 75% complete with respect to materials and 20% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department? 5,020 6,300 4,700 320
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Eastern Corporation uses the weighted-average method in its
| cost | Percent complete | |
| Materials costs | $3,900 | 65% |
| Conversion costs | $10,200 | 35% |
A total of 5,700 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
| Materials costs | $44,800 |
| Conversion costs | $206,900 |
The ending inventory was 75% complete with respect to materials and 20% complete with respect to conversion costs.
What are the equivalent units for conversion costs for the month in the first processing department?
5,020
6,300
4,700
320
Expert Solution
Step 1
| Units in beginning work in process | 600 | |
| Add: Units started | 5700 | |
| Less: Units transferred | -4700 | |
| Units in ending work in process | 1600 | units |
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