Question

Using the weighted average method, you are provided the following information:

Beginning WIP 500 needing 50% yet to complete
Units started and completed and moved to the next process - 1000 units
Ending WIP of 500 units that are 50% complete.

a) 1750
b) 1500
c) 2000
d) None of the above

Answer 1

The total equivalent units using the weighted average method are 1500, which includes units from beginning WIP, units completed, and ending WIP. The correct answer is b) 1500.

Step-by-step explanation:

To calculate the total equivalent units using the weighted average method, you add the units completed and moved to the next process to the equivalent units in the ending work in process (WIP). Here is the calculation based on the information provided:

• Beginning WIP: 500 units needing 50% to complete, so 500 units * 50% = 250 equivalent units
• Units started and completed: 1000 units
• Ending WIP: 500 units that are 50% complete, so 500 units * 50% = 250 equivalent units

Therefore, the total equivalent units = 250 (for beginning WIP) + 1000 (units completed) + 250 (for ending WIP) = 1500 equivalent units.

The correct answer is b) 1500.