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elena55 [62]
3 years ago
9

During March, the production department of a process operations system completed and transferred to finished goods 25,000 units

that were in process at the beginning of March and 110,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method. A. 165,000 materials; 165,000 conversion. B. 140,000 materials; 130,250 conversion. C. 135,000 materials; 119,000 conversion. D. 165,000 materials; 144,000 conversion. E. 144,000 materials; 144,000 conversion.
Business
2 answers:
djverab [1.8K]3 years ago
5 0

Answer:

D. 165,000 materials; 144,000 conversion.

Explanation:

The concept of equivalent units measures the number of units in terms of percentage completion in the inputs introduced to outputs.

Calculation of  the number of equivalent units with respect to both materials and conversion respectively for March.

<u>Materials</u>

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 100%)     =  30,000

Total Equivalent units of Production                           = 165,000

<u>Materials</u>

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 30%)      =     9,000

Total Equivalent units of Production                           = 144,000

Conclusion :

The equivalent units of production are 165,000 materials; 144,000 conversion.

erik [133]3 years ago
4 0

Answer:

D. 165,000 materials; 144,000 conversion.

Explanation:

<u>Production Department</u>

<u>Equivalent Units</u>

<u>Weighted Average Method </u>

<u></u>

First we will find out the transferred units

Beginning Units  25,000

Units Started      110,000

Units Completed and Transferred Out 135,000

Particulars                Units         %  Completed             Equivalent Units

                                                    Mat. Conversion       Mat. Conversion

Units Completed      135,000      100       100            135,000     135,000

<u>Ending WIP                30,000      100        30            30,000       9000</u>

<u>Total Equivalent Units                                               165,000      144,000</u>

We find the equivalent units by adding the transferred out units with the percent of the ending work in process units in the average weighted method.

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