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26 February, 21:15

The Fox Company uses the weighted average method. The beginning work in process consists of 20,000 units (100% complete as to materials and 50% complete as to conversion costs). The number of units completed during the period was 80,000. The ending work in process consists of 10,000 units (100% complete as to materials and 20% complete as to conversion costs). Calculate the equivalent units of production with respect to conversion costs.

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  1. 26 February, 21:27
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    EU conversion 82,000

    Explanation:

    for WA we calcualte equivalent units as comeplted units plus percentage of completion on ending WIP inventory

    completed units 80,000

    ending WIP inventory

    10,000 x 20% = 2,000

    EU conversion 82,000

    There is not distinction betwene started and comeplted like FIFO because the cost will be calcualte on average. The order on which the units are made does no influence under weighted average method.
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