Question

If you have 700 units completed and transferred to process 2, with 500 units remaining in process 1, 50% complete, what is the equivalent units of production for process 1 using the weighted average method?

a) 1200
b) 950
c) 450
d) None of the above

Answer 1

To calculate the equivalent units of production using the weighted average method, add the fully completed units to the partial equivalent units. In this case, there are 950 equivalent units for process 1.

Step-by-step explanation:

To calculate the equivalent units of production for process 1 using the weighted average method, you combine the units transferred to the next process and the percentage of completion for the remaining units in process 1. Here, 700 units have been completed and transferred to process 2, and there are 500 units remaining in process 1 at 50% completion.

Thus, the calculation is:

• 700 units (fully complete) = 700 equivalent units
• 500 units (50% complete) = 500 units * 50% = 250 equivalent units

Total equivalent units = 700 equivalent units (complete) + 250 equivalent units (partial) = 950 equivalent units

Therefore, the correct answer is (b) 950 equivalent units of production for process 1.