Question

At the beginning of the month, the baking department of Mario Company had no beginning work in process inventory. At the end of the month, 800 units that were 75% complete with respect to materials were in the in the ending work in process inventory of its baking department. During the month, 1,200 units were completed and transferred to Finished Goods. Assuming that the weighted-average method is used, the equivalent units in the ending work in process inventory with respect to materials of the baking department equal:_______.

Answer 1

Answer:

1800 units

Explanation:

Equivalent units refer to the number of units which would've been completed if all the efforts were directed at those units which were started during a month, which are of course less than the total units of work in process.

In the given case, equivalent units shall be computed as follows,

Equivalent number of units using weighted average method = Finished goods + Equivalent units in ending work in process

Equivalent number of units = 1200 + 800 × 0.75

Equivalent number of units = 1200 + 600 = 1800 units