Question

Beginning work in process (50% complete) 45,000 units Units received from Dept 1. 255,000 units Finished and transferred 270,000 units Ending work in process (50% complete) 25,000 units All materials are added at the beginning of the process. Conversion cost is evenly distributed throughout the process. Inspection point is when goods are 100% completed. If Average is used, how much is the total equivalent production for materials?

Answer 1

The total equivalent production for materials is 305,000 units.

Step-by-step explanation:

The total equivalent production for materials is calculated by taking into account the starting and ending work in process. In this case, the units of work in process at the beginning and end are 45,000 and 25,000 respectively, both 50% complete.

To calculate the total equivalent production, we need to consider the units that are fully completed (270,000 units) and add to it the portion of the units in the work in process

(45,000 units * 50% = 22,500 units) and

(25,000 units * 50% = 12,500 units) that are also considered as completed.

Therefore, the total equivalent production for materials is 270,000 + 22,500 + 12,500 = 305,000 units.