Question

The Toronto Maple Company (TMC) produces maple syrup and syrup based products. During the current period, the firm's Production Department started production of 210,000 gallons of syrup. During the period, the firm completed and transferred 205,000 gallons to the Shipping Department. The firm ended the period with 12,500 gallons in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by the company. Part 1 (4 points): What were the equivalent units for conversion costs for the period if the beginning inventory was 75% complete as to conversion costs and the ending inventory was 40% complete as to conversion costs

Answer 1

Answer:

Equivalent units of production= 210,000 units

Explanation:

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

We need to use the following formula:

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production= 205,000 + (12,500*0.4)

Equivalent units of production= 210,000 units