Question

aither Company uses a process cost system and the weighted average method. The following data applies to January. Units Beginning Work in Process 2,500 Started during the period 25,000 Ending Work in Process 1,000 The ending work in process inventory is 90% complete. The total number of equivalent whole units processed during January was:

Answer 1

The total number of equivalent units processed during January was 27,400

Step-by-step explanation:

In weighted average method

Total equivalent units of a cost product = A + B * C

Where:

A = units transferred or finished goods (completed)

B = units Ending Work in Process

C = percentage of completion

Units transferred are the beginning Inventory+ started units - ending

Units transferred=2500+25000-1000=26500

Total equivalent units of a cost product = A + B * C

= 26,500+ 1,000 x 0.90=27400