Question

Our company 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 year3,200 units

Answer 1

Equivalent Units of Production (EUP) = 3,520 units

Step-by-step explanation:

Units Completed = Beginning inventory units + Units Started - Ending Inventory

Equivalent Units of Production (EUP) = Beginning Work in Process (WIP) + Started and Completed Units + Ending Work in Process (WIP) x % of conversion

Units Completed = 200 + 3,200 - 400 = 3,000

EUP = 200 + 3,000 + 400 x 80% = 3,520