Question

A company's beginning work in process inventory consisted of 22,000 units that were 1/5 complete with respect to direct labor. These beginning units were completed and another 102,000 units were started during the current period. Of those started, 66,000 were finished and the remaining 36,000 were one-third complete at the end of the period. Using the weighted-average method, the equivalent units of production were:

Answer 1

The equivalent units of production using the weighted-average method are 106,400 units.

Step-by-step explanation:

The equivalent units of production can be calculated using the weighted-average method. To do this, we need to calculate the equivalent units for both direct labor and direct material.

For the beginning work in process inventory, we have 22,000 units that were 1/5 complete with respect to direct labor. This gives us an equivalent of 4,400 units (22,000 units x 1/5).

For the units started during the current period, we have 102,000 units. Of these, 66,000 were finished and 36,000 were one-third complete. This gives us an equivalent of 102,000 units (66,000 finished units + 36,000 units x 1/3).

Adding up the equivalent units for direct labor and direct material, we get a total of 106,400 units (4,400 units + 102,000 units).