Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units. 33,000 were in process In the production department at the beginning of April and 260,000 we started and completed In April. April's beginning Inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 65,000 additional units were in process In the production department and we 70% complete with respect to materials and 20% complete with respect to conversion. 1. Compute the number of units transferred to finished goods. Units transferred out 2. Compute the number of equivalent units with respect to both materials used and conversion used In the production department for April using the weighted-average method.

Answer 1

Answer:

1) completed and transferred 293,000

Equivalent units under W/A method:

EU materials     338,500

EU conversion  306,000

Explanation:

Beginning WIP                 33,000

started and completed 260,000

completed and transferred 293,000

Ending WIP                      65,000

EU under weighted-average methood:

complete and transferred plus percentage of completion ending WIP

293,000 + 65,000 x 70%  =  338,500

293,000 + 65,000 x 20%  =  306,000