Question

There were 1,700 units in beginning inventory that were 40% complete with regard to conversion. During the month, 8,550 units were started and 9,000 were transferred to finished goods. The ending work in process was 60% complete with regard to conversion costs, and materials are added at the beginning of the process. What is the total amount of equivalent units for materials and conversion at the end of the month using the weighted-average method?

Answer 1

Answer:

The total amount of equivalent units for materials and conversion at the end of the month using the weighted-average method is:

       Materials         Conversion

=      10,250 units   9,750 units

Explanation:

a) Data and Calculations:

Ending Work in Process Inventory (Units):

Beginning Inventory units =           1,700

Units started during the month = 8,550

Total units                                    10,250

Units transferred out                    9,000

Ending Work in Process (Units)    1,250

Equivalent Units of Production:            Units     Materials     Conversion

Units transferred to Finished Goods  9,000   9,000 (100%)    9,000 (100%)

Ending Work in Process                       1,250    1,250 (100%)        750 (60%)

Total equivalent units                                      10,250                9,750

b) Using the weighted average method, the total equivalent units considers only the units transferred to the Finished Goods Inventory and the Ending Work-in-Process Inventory.  The Beginning Work-in-Process Inventory is not part of the computation.