Question

Sussex Corporation's production cycle starts in the Mixing Department. The following information is available for April:Work-in-process, April 30 (60% complete) 25,000 unitsTotal units in process during April 280,000 unitsWork-in-process, April 1 (25% complete) 40,000 unitsMaterials are added at the beginning of the process in the Mixing Department. What are the equivalent units of production for the month of April, assuming Sussex uses the weighted average method?a. 240,000 260,000b. 255,000 235,000c. 280,000 270,000d. 315,000 285,000e. 320,000 295,000A. aB. bC. cD. dE. e

Answer 1

Answer:

C. 280,000 270,000

Explanation:

Units Started and Completed: Total Units in Process during April - Work in Process Units at April 30

Equivalent Units of Production (Weighted Average Method): Units Started and Completed +  Ending Inventory x % Completion

Units Started and Completed: 280,000 units - 25,000 units = 255,000

Equivalent Units of Production Materials: 255,000 + 25,000 x 100% = 280,000

Equivalent Units of Production Conversion Costs: 255,000 + 25,000 x 60% = 270,000