Question

Knowledge Check 01 Daffy Taffy uses the weighted-average method in its process costing system. The company provided the following information: Mixing Department Units Percentage Complete Materials Conversion Beginning work in process inventory 200 55% 60% Units started into production during the period 3,000 Units transferred out during the period 2,600 Ending work in process inventory 600 25% 40% What is the number of equivalent units of production with respect to materials during the period?

Answer 1

The number of equivalent units of production with respect to materials during the period is 2,750 units

Step-by-step explanation:

The computation of the equivalent unit of the material is shown below:

= (units transferred out × completed percentage) + (ending inventory units × completed percentage)

= (2,600 units × 100%) + (600 units × 25%)

= 2,600 units + 150 units

= 2,750 units

For computing, the equivalent units of the material we have to transferred the units transferred and ending inventory units only.