Question

Beginning Work in Process was 20,000 units 20% that were complete and 80,000 units started, with ending Work in Process of 18,000 units that were 30% complete. If the manager adds materials halfway during the process and conversion costs occur uniformly during processing, what are the equivalent units for material and conversion costs respectively under a weighted-average assumption?

Answer 1

materials 18,000 Conversion 23,400

Step-by-step explanation:

Assuming weighted-average method:

equivalent units: complete units + percentage of completion ending WIP:

physical units:

beginning 20,000

started 8,000

ending (18,000)

complete 10,000

conversion percentage of completion ending WIP:

18,000 x 30% = 5,400 units

materials percentage of completion ending WIP:

18,000 x 0% = 0

Notice it state the materials are added half-way and this units are at 30% they need to be at least 50% to get the materials added. So, none have it.

Equivalent unit Conversion:

18,000 + 5,400 = 23,400

Equivalent units Materials:

18,000 + 0 = 18,000