Baker Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work-in-process inventory that were 90% complete with respect to conversion costs. An additional 95,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 11,000 units in the ending work-in-process inventory of the Assembly Department that were 90% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month

the equivalent units of production for conversion costs in the Assembly Department for the month are 101,900

Explanation:

Step 1 Calculate the Units Completed and Transferred to Finished Goods

Units Completed and Transferred to Finished Goods =  units in beginning work-in-process inventory+ units were transferred in from the prior department-units in the ending work-in-process inventory

therefore, Units Completed and Transferred to Finished Goods = 8,000+95,000-11,000 = 92,000

Step 2 Calculate the equivalent units of production for conversion costs

Note : work-in-process inventory of the Assembly Department that were 90% complete with respect to conversion costs

Work-in-process inventory (11,000× 90%)                         =   9,900

Units Completed and Transferred Out (92,000× 100%)  = 92,000

Total equivalent units of production                                 = 101,900

Equivalent unit of production = 101,900 units

Explanation:

Calculating the unit transfer to next department using the formula;

Unit transfer to next department = unit in beginning work in progress+unit started into production -unit in ending work in progress

Unit transfer to next department  = 8000+95000-11000

                                                          = 92,000

Calculating the conversion unit, we have;

Conversion = 11,000*90%

                     = 9900

Therefore,

Equivalent unit of production = Unit transfer to next department + Conversion

                                               = 92,000+9900

                                               = 101,900 units

Equivalent unit of production = 101,900 units

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