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Baxter Company uses the weighted-average method in its process costing system. The Packaging Department started the month with 300 units in process that were 70% complete, receiving 2,000 units from the Cutting Department. The packaging department had 200 units in process at the end of the period that are 40% complete. All materials are added at the beginning of the process and conversion is added uniformly. From the Packaging Department, units are transferred to Finished Goods. For conversion costs, the equivalent units of production for the Packaging Department is ________.

Answer :

TomShelby

Answer:

Equivalent unit for conversion cost: 2,180

Explanation:

As it used the wiegthed-average method to calcualte their cost. the equivalent untis will be complete and transferred unit + complete percentage of ending unit:

beginning        300

started          2,000

ending units:  (200)

completed and transferred 2,100

percentage of completion ending inventory:

200 x 40% = 80

total equivalent units 2,100 + 80 = 2,180

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