a company uses a process costing system. the company uses the weighted - average method and reports the…

a company uses a process costing system. the company uses the weighted - average method and reports the following data for its welding department. units completed and transferred out 190,000. ending work in process inventory 30,000. direct materials percent complete 100%. conversion percent complete 40%. calculate the equivalent units of production for both direct materials and conversion for the welding department. multiple choice 130,000 direct materials, 130,000 conversion. 130,000 direct materials, 112,000 conversion. 107,500 direct materials, 118,000 conversion. 122,500 direct materials, 112,000 conversion. 112,500 direct materials, 130,000 conversion.

a company uses a process costing system. the company uses the weighted - average method and reports the following data for its welding department. units completed and transferred out 190,000. ending work in process inventory 30,000. direct materials percent complete 100%. conversion percent complete 40%. calculate the equivalent units of production for both direct materials and conversion for the welding department. multiple choice 130,000 direct materials, 130,000 conversion. 130,000 direct materials, 112,000 conversion. 107,500 direct materials, 118,000 conversion. 122,500 direct materials, 112,000 conversion. 112,500 direct materials, 130,000 conversion.

Answer

Explanation:

Step1: Calculate equivalent units of direct materials

The units completed and transferred out are 100,000 and the ending work - in - process has 30,000 units with 100% completion for direct materials. So the equivalent units of direct materials = Units transferred out+ (Ending work - in - process units×Percent complete for direct materials) = 100,000+(30,000×100%) = 130,000.

Step2: Calculate equivalent units of conversion

The units completed and transferred out are 100,000 and the ending work - in - process has 30,000 units with 40% completion for conversion. So the equivalent units of conversion = Units transferred out+(Ending work - in - process units×Percent complete for conversion) = 100,000+(30,000×40%) = 100,000 + 12,000=112,000.

Answer:

130,000 direct materials, 112,000 conversion