Conlon Chemicals manufactures paint thinner. Information on the work in process follows:

Beginning inventory, 43,300 partially complete gallons

Transferred out, 211300 gallons

Ending inventory (materials are 18 percent complete; conversion costs are 11 percent complete.)

started this month, 235400 gallons

Required

a. Compute the equivalent units for materials using the weighted-average method.

b. Compute the equivalent units for conversion costs using the weighted-average method.

a. The equivalent units for materials using the weighted-average method  223432 gallons

b. The equivalent units for conversion costs using the weighted-average method 218714 gallons

Explanation:

The Concept of Equivalent units needs to be first defined.Equivalent Units in process costing is the number of units in terms of completion stage or percentage of a certain input element in the process.

Step 1 Calculate the Units of Closing Work In Process

Hint: Units IN must equal units Out

Units of Closing Work In Process = Units of Opening Work In Process + Units Started during the year - Units of Closing Work In Process

Therefore Units of Closing Work In Process  = 43300+235400-211300

                                                                          = 67400 units

Step 2 Calculate the Equivalent Units of Materials

Closing Work In Process ( 67400×18%)                 =   12132

Completed and Transferred Out ( 211300×100%) = 211300

Total                                                                             223432

Step 3 Calculate the Equivalent Units of conversion costs

Closing Work In Process ( 67400×11%)                  = 7414

Completed and Transferred Out ( 211300×100%) = 211300

Total                                                                            218714