Alonso T. Corporation uses the weighted-average method in its process costing system. In their first processing department, the company worked on 1,050 equivalent units of production with respect to conversion costs in April. Additional information for April is: Beginning inventory 230 units 40% complete Started 1,345 units Completed and transferred out 700 units Q: The % of completion of the ending inventory in work-in-process with respect to conversion cost is: A: % (enter % amount, not decimal; ex. 22, not 0.22)

The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.

Explanation:

First determine the Physical Units of Closing Work In Process

Physical Units of Closing Work In Process Calculation

Physical Units of Closing Work In Process =  230 +  1,345 - 700

                                                                      =  875

Calculation of Equivalent Units of Production

(To determine Equivalent units of Closing Work In Process)

Conversion Cost

Units Completed and Transferred (700 × 100%)         =    700

Units in Closing Work In Process (Balancing figure)   =   350

Equivalent Units of Production                                     = 1,050

Percentage Completion = Equivalent Units of Closing Work In Process / Physical Units of Closing Work In Process × 100

                                         = 350 / 875 × 100

                                         = 40%

The % of completion of the ending inventory in work-in-process with respect to conversion cost is: 40%.

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