Question

240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion. 1. Compute the number of units transferred to finished goods. 2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.'

Answer 1

Question Completion:

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April.

Answer:

1. The number of units transferred to the Finished Goods Inventory is 218,000.

2. Number of equivalent units with respect to materials and conversion:

Materials = 305,600

Conversion = 264,600

Step-by-step explanation:

a) Data and Calculations:

Materials Conversion

Beginning inventory 60% 40%

Units completed before 36,000 24,000

Units completed now 24,000 36,000

Equivalent units of production:

Started and completed 240,000 240,000

Ending inventory (82,000 units) 80% 30%

= 65,600 24,600

Total equivalent unit 305,600 264,600

The number of units transferred to finished:

Beginning inventory units 60,000

Units started and completed 240,000

Total units available 300,000

less Ending inventory units 82,000

Units transferred out 218,000

b) Using the weighted-average method, the equivalent units of production are equal to the units started and completed plus the units of ending inventory based on the degree of completion.