Assuming that there was no beginning work in process inventory, and the ending work in process inventory is 50% complete with respect to conversion costs, the number of equivalent units of production with respect to conversion costs under the weighted-average method would be?

A) less than the units started during the period.
B) the same as the units completed.
C) the same as the units started during the period.
D) less than the units completed.

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Qasem Alshammari · Accepted Answer

Final Answer : A, Explanation :  Under the weighted-average method, the equivalent units of production for conversion costs include fully completed units plus a portion of the units in ending work in process inventory based on their stage of completion. Since the ending work in process inventory is only 50% complete with respect to conversion costs, the equivalent units of production will be less than the total units started during the period, as it accounts for the partial completion of these units.

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