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Alex787 [66]
3 years ago
8

The ALG Manufacturing Company has gathered the following information for the month of September:• 6,000 units in the beginning W

ork-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs)• 60,000 units were started into production• 50,000 units were completed and transferred to the next department• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.What are the equivalent units of production (EUP) for materials in the month of September assuming ALG uses weighted-average process costing? A. 52,000B. 64,500C. 66,000D. 61,500
Business
1 answer:
mars1129 [50]3 years ago
4 0

Answer:

C. 66,000

Explanation:

Ending Work in Process (WIP) = Beginning Work in Process + Units Started into Production - Units Completed and Transferred

Ending WIP = 6,000 * 100% + 60,000 - 50,000 = 16,000

Equivalent Units of Production (EUP) = Units Completed + Units Ending WIP x % of conversion

EUP = 50,000 + 16,000 * 100 = 66,000

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