Jastak Company uses the weighted-average method in its process costing system. Operating data for the painting department for the month of April appear below:

Percent Complete with

Units Respect to Conversion

Beginning work in process inventory 1,000 80%

Transferred in from the prior-

department during April 98,800

Ending work in process inventory 8,300 90%

What were the equivalent units for conversion costs in the Painting Department for April?

The equivalent units for conversion costs in the Painting Department for April can be determined as follows:

Beginning Work in Process Inventory - 1,000 x 20% = 200 units

add Transferred from prior department - 98,800 x 100% = 98,800 units

less ending work in process inventory - 8,300 x 90% = 7,470 units

Total transferred out - 91,530 units (100% complete)

Explanation:

Equivalent units in costing are obtained by multiplying the units with the percentage of work to be done.

a) For beginning work in process inventory, 80% was completed previously, so work to be done in April was 100 - 80 = 20%

b) For transfer from prior department, 100% work was to be done in April.

c) For ending work in process, 90% work was done in April, leaving 10% to be completed in May.