Question

Item 12 A production department's output for the most recent month consisted of 10,500 units completed and transferred to the next stage of production and 10,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% complete with respect to both direct materials and conversion costs. There were 1,100 units in beginning Work in Process inventory, and they were 80% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Answer 1

Total equivalent units= 16,800

Step-by-step explanation:

Giving the following information:

Beginning inventory= 1,100 units 80% complete

Units produced= 10,500 units

Ending WIP= 10,500 60% complete

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

Beginning inventory= 0

Units completed in the period= 100%

Ending inventory WIP= units*completion

In this exercise:

Beginning inventory= 0

Units completed in the period= 10,500

Ending inventory WIP= 10,500*0.6

Total equivalent units= 16,800