Question

Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be: A) the same as the units completed. B) less than the units completed. C) the same as the units started during the period. D) less than the units started during the period.

Answer 1

Answer:

D) less than the units started during the period.

Explanation:

started units represent all the units worked during the period

complete units + physical units WIP

while equivalent units will be:

complete units + ending WIP x 70%

because of this, the equivalent units is fewer than started units.