Question

The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100% complete.

Units:

Beginning WIP, 1/1: 60,000 units, 15% complete
Started: 105,000 units
Ending WIP, 1/31: 40,000 units, 20% complete
Costs:

Materials: beginning WIP $16,500, current costs $643,500
Conversion: beginning WIP $33,250, current costs $332,500
What are the equivalent units for materials?

a) 165,000 units
b) 148,000 units
c) 120,000 units
d) 112,000 units

Answer 1

The equivalent units for materials, we need to consider the units that are complete and the units that are still in progress. In this case, the beginning WIP units are 60,000 and are 15% complete, so equivalent units for materials in the Davidson Company's assembly process for January is 122,000 units.

Step-by-step explanation:

To calculate the equivalent units for materials, we need to consider the units that are complete and the units that are still in progress. In this case, the beginning WIP units are 60,000 and are 15% complete, so we have 60,000 x 15% = 9,000 equivalent units for materials.

The units started in January are 105,000 and are 100% complete, so we have 105,000 x 100% = 105,000 equivalent units for materials. The ending WIP units are 40,000 and are 20% complete, so we have 40,000 x 20% = 8,000 equivalent units for materials. Therefore, the total equivalent units for materials is 9,000 + 105,000 + 8,000 = 122,000 units.