Question

A production department's output for the most recent month consisted of 14,000 units completed and transferred to the next stage of production and 14,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 70% complete with respect to both direct materials and conversion costs. There were 1,800 units in beginning Work in Process inventory, and they were 90% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Answer 1

Answer:

Materials =  19,600 units

Conversion Costs = 19,600 units

Explanation:

It is important to note that the company uses the weighted average method.

This means we are only interested in the equivalent units of units completed and transferred and units in ending work in process

The equivalent units of production for the month, assuming the company uses the weighted average method :

Materials = 14,000 x 100 % + 14,000 x 70% = 19,600 units

Conversion Costs = 14,000 x 100 % + 14,000 x 70% = 19,600 units