Question

etaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year: Beginning Work in Process (40% complete, $1,100) 200 units Ending inventory of Work in Process (80% complete) 400 units Total units started during the year 3,200 units

Answer 1

Answer:

Equivalent units of production= 3,520

Explanation:

Giving the following information:

Ending inventory of Work in Process (80% complete) 400 units

Total units started during the year 3,200 units

To calculate the equivalent units using the weighted-average method, 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= 3,200 + (400*0.8)

Equivalent units of production= 3,520