Question

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

Tons of Product Percent of Conversion Added
Beginning Work in Process 230,000 60%
Goods started 570,000 100%
Goods completed 620,000 100
Ending Work in Process 180,000 70%

a. 758,000
b. 800,000
c. 620,000
d. 746,000

Answer 1

Total equivalent units= 746,000

Step-by-step explanation:

Giving the following information:

Beginning Work in Process 230,000 60%

Goods started 570,000 100%

Goods completed 620,000 100

Ending Work in Process 180,000 70%

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production:

Units completed in the period= 620,000

quivalent units in ending inventory WIP= (180,000*0.7)= 126,000

Total equivalent units= 746,000