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Deffense [45]
3 years ago
6

Beginning inventory was partially complete (materials are 100 percent complete; conversion costs are 61 percent complete). Start

ed 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.
Business
1 answer:
zimovet [89]3 years ago
5 0

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

<u><em>Equivalent units for materials</em></u>

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.

<u><em>Equivalent units for Conversion Costs</em></u>

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.

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