A Company Uses a Process Costing System

Multiple Choice

A company uses a process costing system.Its Welding Department completed and transferred out 100,000 units during the current period.The ending inventory in the Welding Department consists of 30,000 units (75% complete with respect to direct materials and 40% complete with respect to conversion costs) . Determine the equivalent units of production for the Welding Department for direct materials and conversion costs assuming the weighted average method.

A) 130,000 materials; 130,000 conversion.
B) 130,000 materials; 112,000 conversion.
C) 107,500 materials; 118,000 conversion.
D) 122,500 materials; 112,000 conversion.
E) 112,500 materials; 130,000 conversion.