Cost Accounting Quiz: Equivalent Units Weighted Average

20 questions · exam conditions

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Equivalent Units Weighted AverageQuestion 1 of 20

In a process costing system, the Packaging Department is the final stage. The department began the month with 1,000 units in WIP (30% complete for packaging costs). During the month, 30,000 units were transferred in from the prior department, and 28,000 units were completed. The ending WIP was 2,000 units, 80% complete for packaging costs. A total of 1,000 units of normal spoilage were discovered at final inspection.

Using the weighted-average method, what are the equivalent units for packaging costs?

29,000

29,600

30,600

31,000

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Cost Accounting Quiz

Cost Accounting Quiz: Equivalent Units Weighted Average

Practice Equivalent Units Weighted Average in Cost Accounting with focused quiz questions that help you check what you know, review explanations, and build confidence with test-style prompts.

What this quiz covers

This quiz focuses on Equivalent Units Weighted Average, giving you a quick way to practice the rules, question types, and explanations that matter most for Cost Accounting.

How to use this quiz

Try each quiz question before looking at the correct answer. Use the explanations to review missed ideas, then come back to similar questions until the pattern feels familiar.

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Question 1

Using the weighted-average method, what are the equivalent units for packaging costs?

29,000
29,600
30,600 (correct answer)
31,000

Explanation: First, verify the physical unit flow.

Units to account for: $1,000 \text{ Beg WIP} + 30,000 \text{ TI} = 31,000$
Units accounted for: $28,000 \text{ Completed} + 2,000 \text{ End WIP} + 1,000 \text{ Spoilage} = 31,000$ . The flow is correct.

Next, calculate EUP for packaging costs.

Units completed and transferred out (good units): 28,000 units, 100% complete = 28,000 EUP.
Normal spoilage (inspected at 100%): 1,000 units, 100% complete = 1,000 EUP.
Ending WIP: 2,000 units, 80% complete = $2,000 \times 0.80 = 1,600$ EUP.
Total EUP = $28,000 + 1,000 + 1,600 = 30,600$ EUP.

Distractor Rationale:

A: This represents the sum of good completed units and spoiled units ( $28,000 + 1,000$ ), ignoring ending WIP.
B: This ignores the spoiled units ( $28,000 + 1,600 = 29,600$ ). This is a very common error.
D: This is the total number of physical units accounted for, not the equivalent units.

Question 2

A manufacturing process has a beginning WIP of 10,000 units (100% material, 50% conversion). During the period, 90,000 units were started. The ending WIP consists of 5,000 units (100% material, 20% conversion). All other units were completed.

Under the weighted-average method, how many equivalent units of conversion costs were produced?

90,000
95,000
96,000 (correct answer)
100,000

Explanation: First, calculate the number of units completed.

Units Completed = Beginning WIP + Units Started - Ending WIP
Units Completed = $10,000 + 90,000 - 5,000 = 95,000$ units.

Next, calculate the EUP for conversion costs.

Units completed: $95,000 \times 100\% = 95,000$ EUP.
Equivalent units in ending WIP: $5,000 \times 20\% = 1,000$ EUP.
Total EUP for conversion costs: $95,000 + 1,000 = 96,000$ EUP.

Distractor Rationale:

A: This is the number of units started during the period.
B: This is the number of units completed, but it omits the equivalent units in the ending WIP.
D: This is the total number of physical units to be accounted for ( $10,000 + 90,000$ ).

Question 3

The Assembly Department is the second stage in a company's production cycle. All materials are added at the end of the process in this department. Data for June is as follows:

Beginning WIP: 5,000 units (60% complete for conversion)
Units transferred in from the prior department: 35,000 units
Units transferred to finished goods: 32,000 units
Ending WIP: 8,000 units (25% complete for conversion)

Using the weighted-average method, what are the equivalent units of production for transferred-in costs and materials, respectively?

34,000 and 32,000
40,000 and 32,000 (correct answer)
40,000 and 34,000
35,000 and 32,000

Explanation: Under the weighted-average method, we calculate EUP for each cost component based on units completed and ending WIP.

Transferred-in (TI) Costs: TI costs are always 100% complete for all units in the department from the moment they are transferred in.
- Units completed: 32,000 EUP
- Ending WIP: 8,000 EUP (since they are 100% complete for TI)
- Total EUP for TI Costs = $32,000 + 8,000 = 40,000$
Materials: Materials are added at the end of the process (100% completion).
- Units completed: These units reached 100% completion, so they received all materials. EUP = 32,000.
- Ending WIP: These units are only 25% complete. They have not reached the end of the process, so they have received 0% of the materials. EUP = $8,000 \times 0\% = 0$ .
- Total EUP for Materials = $32,000 + 0 = 32,000$

Therefore, the EUPs are 40,000 for transferred-in costs and 32,000 for materials. Distractor Rationale:

A: This incorrectly calculates TI EUP using the conversion percentage for ending WIP ( $32,000 + 8,000 \times 25\% = 34,000$ ).
C: This correctly calculates TI EUP but incorrectly calculates materials EUP by applying the conversion percentage ( $32,000 + 8,000 \times 25\% = 34,000$ ).
D: This uses the number of units transferred in during the period (35,000) for TI EUP, which is incorrect. It also correctly calculates materials EUP.

Question 4

A chemical process has the following data for July:

Beginning WIP inventory: 20,000 gallons
Started during July: 130,000 gallons
Ending WIP inventory: 15,000 gallons
Normal spoilage: 4,000 gallons
Abnormal spoilage: 1,000 gallons

Ending WIP is 100% complete for materials and 70% for conversion. All spoilage is detected upon final inspection at the end of the process (100% completion point).

Using the weighted-average method, what are the equivalent units for conversion costs?

141,500
145,500 (correct answer)
146,000
150,000

Explanation: First, calculate the number of good units completed and transferred out.

Total units to account for = $20,000 + 130,000 = 150,000$
Good units completed = Total units - Ending WIP - Normal Spoilage - Abnormal Spoilage
Good units completed = $150,000 - 15,000 - 4,000 - 1,000 = 130,000$ gallons.

Next, calculate the EUP for conversion costs.

The EUP calculation includes good units completed, spoilage (up to the inspection point), and ending WIP.
Good units completed: $130,000 \times 100\% = 130,000$ EUP.
Normal spoilage (inspected at 100%): $4,000 \times 100\% = 4,000$ EUP.
Abnormal spoilage (inspected at 100%): $1,000 \times 100\% = 1,000$ EUP.
Ending WIP: $15,000 \times 70\% = 10,500$ EUP.
Total EUP = $130,000 + 4,000 + 1,000 + 10,500 = 145,500$ EUP.

Distractor Rationale:

A: This result is obtained if spoilage is completely ignored in the EUP calculation ( $130,000 + 10,500 = 140,500$ ). Let's recalculate the distractor. Maybe this comes from ignoring only abnormal spoilage: $130,000 + 4,000 + 10,500 = 144,500$ . Or ignoring only normal spoilage: $130,000 + 1,000 + 10,500 = 141,500$ . This is a strong distractor.
C: This result incorrectly assumes the spoilage completion percentage is the same as ending WIP's: $130,000 + (5,000 \times 70\%) + 10,500 = 130,000 + 3,500 + 10,500 = 144,000$ . Not quite 146,000. Let's try another path. What if good units completed is calculated incorrectly? Total units accounted for is 150,000. Let's sum the units differently. (Good units completed + Normal Spoilage) are treated together. (130,000+4,000)100% + 1,000100% + 15,000*70% = 134,000 + 1,000 + 10,500 = 145,500. Correct. Let's find a path to 146,000. Maybe includes total spoilage but ignores ending WIP. 130,000 + 5,000 = 135,000. No. Maybe it adds physical ending WIP units: 130,000 + 5,000 + 15,000 = 150,000. Let's try adding physical spoilage to completed units and then adding WIP EUP: (130,000 + 5,000) + 10,500 = 145,500. The distractors are hard. Let's check 146,000 again. Maybe it's total units completed (130,000 + 5,000 spoiled) + ending physical units (15,000)? No. How about Total units started and finished? (130,000 + 5,000 - 20,000) + spoilage + ending EUP... too complex. Maybe it's total units (150,000) less ending physical units (15,000) + ending EUP (10,500)? 135,000 + 10,500 = 145,500. Let's make C the result of ignoring ending WIP EUP calculation: 130,000 + 4,000 + 1,000 = 135,000. No, that's not 146k. Let's make it 130,000 + 4,000 + 1,000 + 15,000 = 150,000. That is D. Ok, 146,000 may arise from including good completed units (130k) + normal spoilage (4k) + abnormal spoilage (1k) + ending WIP units (15k) and then subtracting beginning WIP (20k)? No. Let's recalculate 146,000. Maybe the good units completed is calculated as 135,000. 135k + 10.5k = 145.5k. OK, I'll adjust the distractor. Let's make it 144,500 (ignoring abnormal spoilage EUP). Recalculating... 130,000 + 4,000 + 10,500 = 144,500. This is a better distractor.
D: This is the total physical units to be accounted for, not the equivalent units.

Question 5

A processing department provides the following production report data for October:

Beginning WIP inventory: 7,000 units (100% materials, 25% conversion)
Units started in October: 28,000 units
Ending WIP inventory: 5,000 units (100% materials, 80% conversion)
Normal spoilage: 2,000 units

Inspection for spoilage occurs when units are 50% complete. Materials are added at the start of the process.

Using the weighted-average method, what are the equivalent units of production for conversion costs?

31,000
32,000
33,000 (correct answer)
35,000

Explanation: First, determine the number of good units completed.

Total units to account for = $7,000 + 28,000 = 35,000$
Good units completed = Total units - Ending WIP - Normal Spoilage = $35,000 - 5,000 - 2,000 = 28,000$ units.

Next, calculate the EUP for conversion costs.

Good units completed (100% complete): $28,000 \times 100\% = 28,000$ EUP.
Normal spoilage (inspected at 50%): $2,000 \times 50\% = 1,000$ EUP.
Ending WIP (80% complete): $5,000 \times 80\% = 4,000$ EUP. Since ending WIP is past the inspection point, these units were inspected and found to be good.
Total EUP = $28,000 + 1,000 + 4,000 = 33,000$ EUP.

Distractor Rationale:

A: This result is obtained by ignoring the spoilage EUP and also miscalculating the ending WIP EUP using the beginning percentage ( $28,000 + 5,000 \times 25\% = 29,250$ ). That's not right. Let's try again. $28,000 + (5,000 \times 80\%) - (2,000 \times 50\%) = 31,000$ . Subtracting spoilage EUP is a possible error.
B: This result is obtained by ignoring spoilage EUP: $28,000 + 4,000 = 32,000$ .
D: This represents the total physical units to account for, not the equivalent units of production.

Question 6

The final department in a production process had a beginning work-in-process inventory of 20,000 units that were 70% complete for conversion costs. During the period, 80,000 units were transferred in from the prior department. There was no ending work-in-process inventory. A total of 95,000 units were completed and transferred to finished goods, and the remaining units were identified as normal spoilage from a final inspection.

Using the weighted-average method, what are the equivalent units for transferred-in costs?

80,000
95,000
100,000 (correct answer)
105,000

Explanation: First, analyze the flow of physical units.

Units to account for = Beginning WIP + Units transferred in = $20,000 + 80,000 = 100,000$ units.
Units accounted for = Good units completed + Normal spoilage + Ending WIP
We are given Good units completed = 95,000 and Ending WIP = 0.
Therefore, Normal spoilage = $100,000 - 95,000 - 0 = 5,000$ units.

Now, calculate the EUP for transferred-in (TI) costs.

Under weighted-average, TI costs are 100% complete for all units that entered the department.
The EUP calculation includes good units completed, spoilage, and ending WIP.
Good units completed: 95,000 EUP
Normal spoilage: 5,000 EUP (since they were in the process, they are 100% complete for TI costs)
Ending WIP: 0 EUP
Total EUP for TI Costs = $95,000 + 5,000 + 0 = 100,000$ EUP.

Alternatively, for TI costs, the EUP under weighted-average is always the total units to be accounted for if there is no ending WIP, or the units transferred-in plus beginning WIP. Distractor Rationale:

A: This is the number of units transferred in during the period, ignoring beginning WIP and spoilage.
B: This is the number of good units completed, ignoring the spoiled units which also consumed transferred-in resources.
D: This includes an incorrect unit count, possibly from adding spoilage twice or miscalculating the number of spoiled units.

Question 7

A company has a single processing department. Materials are added at the start, and conversion costs are incurred uniformly. The company uses a weighted-average process costing system. The following information is available for the month:

Units in beginning WIP: 12,000 (40% complete for conversion)
Units started during month: 78,000
Units completed and transferred out: 70,000
Units in ending WIP: 20,000 (75% complete for conversion)

What are the equivalent units of production for materials?

70,000
78,000
82,000
90,000 (correct answer)

Explanation: Under the weighted-average method, EUP for materials is the sum of materials in units completed and materials in ending WIP.

Units completed and transferred out: 70,000 units. Since they are completed, they contain 100% of the required materials. EUP = 70,000.
Units in ending WIP: 20,000 units. Materials are added at the beginning of the process, so any unit in WIP, regardless of its conversion completion, is 100% complete for materials. EUP = $20,000 \times 100\% = 20,000$ .
Total EUP for materials: $70,000 + 20,000 = 90,000$ .

Distractor Rationale:

A: This represents only the units completed and transferred out, ignoring the materials in the ending WIP.
B: This is the number of units started during the month, which is not the same as EUP.
C: This incorrectly applies the conversion cost percentage to the ending WIP for materials: $70,000 + (20,000 \times 75\%) - 12,000$ ? No. Maybe $70,000 + 12,000$ beginning units = 82,000. This is a plausible misstep of adding beginning physical units.

Question 8

The Forming Department of a company uses the weighted-average method. The following information is available for June:

Beginning WIP: 8,000 units (100% materials, 60% conversion)
Units completed and transferred out: 42,000
Ending WIP: 6,000 units (100% materials, 30% conversion)

The equivalent units of production for materials were determined to be 48,000. The total physical units accounted for matched the total physical units to be accounted for.

How many units were started in the Forming Department during June?

34,000
40,000 (correct answer)
48,000
50,000

Explanation: This problem requires working backwards using the physical unit flow equation.

Physical Unit Flow: Beginning WIP + Units Started = Units Completed + Ending WIP

We are given:

Beginning WIP = 8,000
Units Completed = 42,000
Ending WIP = 6,000

Let 'S' be the units started. Substitute the known values into the equation:

$8,000 + S = 42,000 + 6,000$
$8,000 + S = 48,000$
$S = 48,000 - 8,000$
$S = 40,000$

The information about EUP for materials (48,000) and conversion percentages is consistent with the data but not needed to find the number of units started. It can be used as a check: EUP Materials = 42,000 completed + (6,000 ending

\times

100%) = 48,000. Distractor Rationale:

A: This results from subtracting beginning WIP from units completed ( $42,000 - 8,000 = 34,000$ ), which represents 'units started and completed'.
C: This is the total number of units accounted for ( $42,000 + 6,000$ ), not the number of units started.
D: This is the sum of all units listed ( $42,000 + 8,000$ ), a common error in handling the unit flow equation.

Question 9

A department adds materials at the beginning of its process and incurs conversion costs uniformly. At the start of the period, there was no beginning inventory. During the period, 50,000 units were started, and 40,000 units were completed. The ending work-in-process was 60% complete as to conversion costs.

Using the weighted-average method, what are the total equivalent units for conversion costs?

40,000
44,000
46,000 (correct answer)
50,000

Explanation: First, determine the number of units in ending WIP.

Ending WIP = Beginning WIP + Units Started - Units Completed
Ending WIP = $0 + 50,000 - 40,000 = 10,000$ units.

Next, calculate the EUP for conversion costs.

Units completed and transferred out: $40,000 \times 100\% = 40,000$ EUP.
Equivalent units in ending WIP: $10,000 \text{ units} \times 60\% = 6,000$ EUP.
Total EUP for conversion costs: $40,000 + 6,000 = 46,000$ EUP.

Since there is no beginning inventory, the weighted-average and FIFO methods would produce the same result in this specific case. Distractor Rationale:

A: This represents only the units completed, ignoring the work done on the ending inventory.
B: This result might come from an incorrect calculation of ending WIP units as $50,000 - 40,000 - 6,000$ or some other error. Let's try $40,000 + 10,000 \times 40\% = 44,000$ , using the complement of the completion percentage.
D: This represents the total physical units started, not the equivalent units of production.

Question 10

A department's production for May resulted in 60,000 equivalent units for direct materials and 54,000 equivalent units for conversion costs using the weighted-average method. A total of 50,000 physical units were completed and transferred out. All materials are added at the start of the process. How many physical units were in the ending work-in-process inventory?

4,000
6,000
10,000 (correct answer)
14,000

Explanation: The information about material equivalent units is the key to solving this problem.

Total EUP for Materials = (Units completed) + (EUP in ending WIP for materials)

Since materials are added at the beginning of the process, any unit in ending WIP is 100% complete with respect to materials. Let 'EWIP' be the number of physical units in ending WIP.

$60,000 = 50,000 + (\text{EWIP} \times 100\%)$
$60,000 = 50,000 + \text{EWIP}$
$\text{EWIP} = 10,000$ units.

The information about conversion cost EUP can be used to determine the percentage of completion for conversion costs in ending WIP (

54,000 = 50,000 + (10,000 \times P)

4,000 = 10,000P

P=40\%

), but this is not required by the question. Distractor Rationale:

A: This is the number of equivalent units for conversion costs in the ending inventory ( $54,000 - 50,000 = 4,000$ ), not the number of physical units.
B: This is the difference between the material EUP and conversion EUP ( $60,000 - 54,000 = 6,000$ ), which is not the number of ending WIP units.
D: This might be an arithmetic error, for instance, adding the differences (10,000 + 4,000) instead of solving.

Question 11

A manufacturing department provides the following data for the month of April:

Work-in-process, April 1: 15,000 units (100% complete for materials, 40% complete for conversion)
Units started during April: 85,000 units
Work-in-process, April 30: 20,000 units (100% complete for materials, 60% complete for conversion)

Using the weighted-average method, what are the equivalent units of production for conversion costs for April?

80,000
86,000
92,000 (correct answer)
100,000

Explanation: The weighted-average method combines work done in the prior period with work done in the current period. The calculation has two parts: units completed and transferred out, and units in ending work-in-process.

Calculate units completed and transferred out: Beginning WIP + Units started - Ending WIP $15,000 + 85,000 - 20,000 = 80,000$ units.
Calculate equivalent units:
- Units completed and transferred out: $80,000 \text{ units} \times 100\% = 80,000$ EUP
- Equivalent units in ending WIP: $20,000 \text{ units} \times 60\% = 12,000$ EUP
- Total EUP for conversion costs: $80,000 + 12,000 = 92,000$ EUP.

Distractor Rationale:

A: This is the number of units completed and transferred out, but it ignores the equivalent units in ending WIP.
B: This result comes from a common FIFO method error: $(15,000 \times (1-0.40)) + (80,000 - 15,000) + (20,000 \times 0.60) = 9,000 + 65,000 + 12,000 = 86,000$ .
D: This represents the total physical units to be accounted for (15,000 + 85,000), not the equivalent units of production.

Question 12

A company uses a weighted-average process costing system. For a particular department, the following information relates to the past month:

Beginning WIP: 2,000 units
Units completed: 19,000 units
Ending WIP: 3,000 units
EUP for conversion costs: 20,500 units

What additional piece of information is required to calculate the number of units started during the month?

The percentage completion of beginning WIP for conversion costs.
The percentage completion of ending WIP for conversion costs.
The total cost of conversion for the month.
No additional information is required. (correct answer)

Explanation: The number of units started can be calculated using the physical unit reconciliation, for which all necessary data is provided.

Physical Unit Flow: Beginning WIP + Units Started = Units Completed + Ending WIP

We have:

Beginning WIP = 2,000
Units Completed = 19,000
Ending WIP = 3,000

We can solve for Units Started:

$2,000 + \text{Units Started} = 19,000 + 3,000$
$2,000 + \text{Units Started} = 22,000$
$\text{Units Started} = 20,000$

The information about EUP for conversion costs is extra data not needed for this specific question. Therefore, no additional information is required. Distractor Rationale:

A: This information would be necessary for the FIFO method, but not for the physical unit flow.
B: This information is related to the EUP calculation but not the physical unit flow. The EUP total is already given anyway.
C: Cost information is not needed to reconcile physical units.

Question 13

The following data pertains to the operations of the Mixing Department for November:

Beginning WIP units: 40,000 (100% complete for material, 60% for conversion)
Units started: 200,000
Ending WIP units: 30,000 (100% complete for material, 40% for conversion)
Cost of beginning WIP materials: $60,000
Cost of materials added during Nov: $330,000

Using the weighted-average method, what are the equivalent units of production for materials?

200,000
210,000
240,000 (correct answer)
270,000

Explanation: The cost information is irrelevant for calculating equivalent units of production.

Calculate units completed and transferred out: Beginning WIP + Units started - Ending WIP $40,000 + 200,000 - 30,000 = 210,000$ units.
Calculate equivalent units for materials:
- Units completed and transferred out: $210,000 \times 100\% = 210,000$ EUP
- Equivalent units in ending WIP (100% complete for materials): $30,000 \times 100\% = 30,000$ EUP
- Total EUP for materials: $210,000 + 30,000 = 240,000$ EUP.

Distractor Rationale:

A: This is the number of units started during the period.
B: This is the number of units completed and transferred out, but it ignores the equivalent units in ending WIP.
D: This result might come from adding beginning and ending WIP to units started (40,000 + 200,000 + 30,000), which is an incorrect summation of physical units.

Question 14

A company's production process has two types of materials. Material X is added at the 20% completion point. Material Y is added at the 80% completion point. Conversion costs are incurred evenly. Production data for May is as follows:

Units completed and transferred out: 50,000
Ending WIP: 10,000 units, 70% complete for conversion costs

Using the weighted-average method, what are the equivalent units for Material X and Material Y, respectively?

50,000 and 50,000
60,000 and 50,000 (correct answer)
60,000 and 57,000
57,000 and 50,000

Explanation: We need to calculate the EUP for each material separately.

Material X (added at 20% point):
- Units completed (50,000) are 100% complete for Material X.
- Ending WIP (10,000 units) is 70% complete. Since this is past the 20% addition point, these units are 100% complete for Material X.
- Total EUP for X = $50,000 + (10,000 \times 100\%) = 60,000$ .
Material Y (added at 80% point):
- Units completed (50,000) are 100% complete for Material Y.
- Ending WIP (10,000 units) is 70% complete. Since this is before the 80% addition point, these units are 0% complete for Material Y.
- Total EUP for Y = $50,000 + (10,000 \times 0\%) = 50,000$ .

Distractor Rationale:

A: This ignores the EUP in ending WIP for Material X.
C: This correctly calculates EUP for X, but incorrectly calculates EUP for Y by applying the conversion completion percentage ( $50,000 + 10,000 \times 70\% = 57,000$ ).
D: This incorrectly calculates EUP for X using the conversion percentage and correctly calculates EUP for Y.

Question 15

A company's production process begins in the Molding department. Data for Molding for the month of January is shown below.

Beginning WIP Inventory: 2,000 units
Units started during January: 18,000 units
Ending WIP Inventory: 3,000 units
Total equivalent units of production for materials: 20,000 EUP
Total equivalent units of production for conversion: 18,500 EUP

Materials are added at the beginning of the process and conversion costs are incurred uniformly.

Based on this data, what is the percentage of completion of the ending work-in-process inventory with respect to conversion costs?

50% (correct answer)
75%
83%
100%

Explanation: First, calculate the number of units completed and transferred out.

Units completed = Beginning WIP + Units started - Ending WIP = $2,000 + 18,000 - 3,000 = 17,000$ units.

The information on materials EUP (20,000) can be used to verify this, as materials are added at the beginning:

17,000 \text{ completed} + 3,000 \text{ ending WIP} = 20,000

EUP. This confirms the number of units completed is correct. Now, use the EUP formula for conversion costs to find the percentage completion (P).

Total Conversion EUP = (Units completed) + (Ending WIP units $\times$ P)
$18,500 = 17,000 + (3,000 \times P)$
$1,500 = 3,000 \times P$
$P = 1,500 / 3,000 = 0.50$ , or 50%.

Distractor Rationale:

B: This would imply EUP in ending WIP was $3,000 \times 75\% = 2,250$ , for a total of 19,250 EUP.
C: This might result from dividing EUP in ending WIP by something other than physical units, or a miscalculation of units completed. For example, using units started: $18,500 = 18,000 + (3,000 \times P)$ -> $500 = 3000P$ -> $P = 16.7\%). This is not it. How about \(18,500 / (17,000 + 3,000) = 0.925$ ? No. How about $18,500 / (18,000+2,000) = 0.925$ . Let's try (1,500/2,000 = 75%). Maybe divide ending EUP by beginning WIP units?
D: This would imply EUP in ending WIP was 3,000, for a total of 20,000 EUP.

Question 16

The Assembly department of Widget Co. uses a weighted-average process costing system. In March, 20,000 units were completed and transferred out. The ending work-in-process on March 31 consisted of 5,000 units that were 100% complete for materials and 40% complete for conversion costs. The total equivalent units of production for conversion costs for March was 22,000.

What must have been the work done on the beginning inventory, as measured in equivalent units for conversion costs, under the weighted-average method's perspective?

0 equivalent units (correct answer)
2,000 equivalent units
8,000 equivalent units
This cannot be determined from the information given.

Explanation: This is a conceptual question about the weighted-average method. The weighted-average method does not distinguish between work done in the previous period on beginning inventory and work done in the current period. It blends them together. The formula EUP = Units Completed + EUP in Ending WIP implicitly treats all completed units as if they were 100% worked on during the current period for EUP calculation purposes. Therefore, from the perspective of the weighted-average EUP calculation itself, the work done on beginning inventory in the prior period is not separated and is effectively treated as zero; all work is presumed to be part of the current period's effort that resulted in a completed unit. The calculation confirms this: EUP = 20,000 (completed) + (5,000

\times

40%) = 20,000 + 2,000 = 22,000. The calculation does not require any information about beginning inventory's prior-period work. Distractor Rationale:

B: This is the EUP of the ending inventory, not the beginning inventory.
C: A student might try to back-calculate a beginning WIP quantity and percentage, but the method's core assumption makes this irrelevant for the EUP calculation.
D: While specific details of beginning WIP (units, % complete) are not given, the conceptual answer about how weighted-average treats this work is determinable.

Question 17

The Polishing Department uses the weighted-average method. For March, the department reported the following:

Beginning WIP units: 10,000 (30% complete for conversion)
Units started: 60,000
Units completed and transferred out: 55,000

The equivalent units of production for conversion costs were calculated to be 61,000 EUP. The costs for conversion are applied evenly throughout the process.

What was the percentage of completion for the ending work-in-process inventory with respect to conversion costs?

30%
40% (correct answer)
50%
60%

Explanation: First, determine the number of physical units in ending WIP.

Ending WIP = Beginning WIP + Units started - Units completed
Ending WIP = $10,000 + 60,000 - 55,000 = 15,000$ units.

Next, use the total EUP formula to solve for the unknown percentage completion (let's call it 'P').

Total EUP = (Units completed) + (Ending WIP units $\times$ P)
$61,000 = 55,000 + (15,000 \times P)$
Subtract 55,000 from both sides: $6,000 = 15,000 \times P$
Solve for P: $P = 6,000 / 15,000 = 0.40$ , or 40%.

Distractor Rationale:

A: This is the percentage of completion for the beginning WIP, irrelevant for this calculation.
C: This result would be obtained if there were 12,000 units in ending WIP ( $6,000 / 12,000 = 0.50$ ), possibly due to a calculation error in physical units.
D: This result might come from an algebraic error, such as inverting the division or miscalculating the EUP in ending WIP as 9,000 ( $9,000 / 15,000 = 0.60$ ).

Question 18

The Refining Department of a company uses the weighted-average method. Data for July is as follows:

Beginning WIP: 15,000 units (70% complete for conversion)
Units started: 80,000 units
Units completed: 75,000 units
Ending WIP: 20,000 units

The equivalent units for conversion costs were 85,000.

Given the information, what must have been the percentage of completion of the ending work-in-process for conversion costs?

25%
50% (correct answer)
70%
75%

Explanation: The problem can be solved using the EUP formula and algebra.

Total EUP = (Units completed) + (Ending WIP units $\times$ % Complete)

We are given:

Total EUP = 85,000
Units completed = 75,000
Ending WIP units = 20,000

Let 'P' be the percentage of completion for ending WIP.

$85,000 = 75,000 + (20,000 \times P)$
$10,000 = 20,000 \times P$
$P = 10,000 / 20,000 = 0.50$ , or 50%.

Distractor Rationale:

A: This percentage would result in a total EUP of $75,000 + (20,000 \times 0.25) = 80,000$ .
C: This is the percentage completion of the beginning inventory, which is irrelevant information for this calculation.
D: This percentage would result in a total EUP of $75,000 + (20,000 \times 0.75) = 90,000$ .

Question 19

Zephyr Manufacturing uses the weighted-average method in its process costing system. During March, the Finishing Department had 8,000 units in beginning work-in-process inventory that were 70% complete with respect to conversion costs. The department started 45,000 units during March and completed 48,000 units. The ending work-in-process inventory was 60% complete with respect to conversion costs. All materials are added at the beginning of the process.

What are the equivalent units of production for conversion costs for March?

51,000 equivalent units (correct answer)
48,000 equivalent units
50,400 equivalent units
45,000 equivalent units

Explanation: Under weighted-average method, EUP for conversion costs = Units completed + (Ending WIP × % complete). Units completed = 48,000. Ending WIP = Beginning WIP + Started - Completed = 8,000 + 45,000 - 48,000 = 5,000 units. EUP = 48,000 + (5,000 × 60%) = 48,000 + 3,000 = 51,000. Choice B ignores ending WIP. Choice C incorrectly uses beginning WIP completion percentage. Choice D uses only units started.

Question 20

Eastern Manufacturing's Blending Department uses weighted-average process costing. The department processes two products simultaneously: Product X and Product Y, which require different material inputs but share conversion costs proportionally. During May, the department had 9,000 equivalent units in beginning inventory (Product X: 5,000 units at 70% conversion, Product Y: 4,000 units at 60% conversion). The department completed 45,000 units (Product X: 27,000, Product Y: 18,000) and had ending inventory of 6,000 units (Product X: 4,000 units at 40% conversion, Product Y: 2,000 units at 80% conversion). Materials for both products are added at the beginning of the process.

What are the total equivalent units of production for conversion costs for both products combined?

47,200 equivalent units
48,200 equivalent units (correct answer)
46,400 equivalent units
49,000 equivalent units

Explanation: For conversion costs under weighted-average: Product X: 27,000 completed + (4,000 ending × 40%) = 27,000 + 1,600 = 28,600. Product Y: 18,000 completed + (2,000 ending × 80%) = 18,000 + 1,600 = 19,600. Total EUP = 28,600 + 19,600 = 48,200. Choice A uses incorrect completion percentages. Choice C understates ending WIP conversion. Choice D assumes 100% completion for ending WIP.