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Explorer Corporation: Calculate the equivalent units

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Explorer Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were:
Materials costs $10,500 -- 75% complete
Conversion costs $6,400 -- 35% complete
A total of 8,500 units were started, and 7,300 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Materials costs $10,700
Conversion costs $170,900
The ending inventory was 85% completed for materials and 65% completed for conversion costs.

Required: Calculate the equivalent units for conversion costs for the month in the first processing department.

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Solution Summary

Your tutorial is in Excel (attached). The tutorial computes the equivalent units for material and conversion costs (even though that is not asked) so you can see all the steps in a process costing problem using weighted average method. This is now a template for any problem you have, regardless of the question asked. The specific question in the posting is highlighted in yellow for easy review.

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Your tutorial is in Excel (attached). The tutorial computes the equivalent units for material and ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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