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Managerial Accounting

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Calculating Equivalent Units: Dancing Geisha

MGRACT-BNJWK7

Dancing Geisha Company makes solar-powered geisha dolls for tourists in Japan. The plastic dolls are cast in plastic, painted, and encased in a plastic jar with a solar panel, then packaged. Direct materials are added at the beginning of the process and conversion costs are applied evenly throughout the construction process.

In October, there were 1,000 units in beginning inventory that were 100% complete for materials and 60% complete for conversion costs. They transferred 8,500 dolls to finished goods, and had 3,250 dolls in ending work-in-process inventory.

Using weighted-average process costing, how many equivalent units of production were in the month of October, assuming that the 3,250 cases in ending work-in-process inventory were 30% complete for conversion costs for Direct Materials and Conversion Costs?