Question

At the beginning of the recent period, there were 1,020 units of product in a department, one-third completed. These units were finished and an additional 5,500 units were started and completed during the period. 840 units were still in process at the end of the period, one-fourth completed. Using the weighted-average valuation method, the equivalent units produced by the department were:

Answer 1

Using the weighted-average method, the equivalent units produced by the department during the period are 6,390. This includes completing the beginning inventory units, all units started and completed during the period, and the work done on the ending inventory units.

Step-by-step explanation:

To calculate the equivalent units produced using the weighted-average method, we need to take into account both the work done to complete the units from the previous period and the work done on the units started and completed in the current period, as well as the work done on the units that are partially completed at the end of the period.

The calculation is as follows:

• Units from the beginning inventory (1,020 units) were one-third completed at the start of the period. Since they were finished this period, they represent two-thirds of work or equivalent units to be completed in the current period:
  1,020 units × (2/3) = 680 equivalent units.
• Units started and completed during the period: 5,500 units × (100% completed) = 5,500 equivalent units.
• Ending inventory (840 units) was one-fourth completed: 840 units × (1/4) = 210 equivalent units.

Adding these together:

680 (beginning inventory completion) + 5,500 (started and completed) + 210 (ending inventory completion) = 6,390 equivalent units produced by the department during the period.