Question

Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are 61 percent complete). Started this month, 59,400 units. Transferred out, 49,600 units. Ending inventory, 20,900 units (materials are 100 percent complete; conversion costs are 15 percent complete).
Required:

a. Compute the equivalent units for materials using the weighted-average method.
b. Compute the equivalent units for conversion costs using the weighted-average method.

Answer 1

Answer:

Part (a)

Equivalent units for materials using the weighted-average method is 70500 units

Part (b)

Equivalent units for conversion costs using the weighted-average method is 52735 units

Explanation:

                              Transferred Out(eqiv)    Ending Inventory(equiv)     Total

Materials                      49600                              20900                         70500  

Conversion Cost         49600                                3135                           52735

Equivalent units for materials

Transfered Out Units are 100% complete in terms of materials. Hence 49600 equivalent units.

Ending Inventory is 100% complete in terms of materials hence 20900 equivalent units.

Equivalent units for Conversion Costs

Transfered Out Units are 100% complete in terms of Conversion Costs. Hence 49600 equivalent units.

Ending Inventory is 15% complete in terms of materials hence 3135 equivalent units.