Question

g At the beginning of the month, the Painting Department of Skye Manufacturing had 39,000 units in inventory, 75% complete as to materials, and 20% complete as to conversion. During the month the department started 134,000 units and transferred 148,500 units to the next manufacturing department. At the end of the month, the department had 24,500 units in inventory, 40% complete as to materials and 15% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department. Group of answer choices 158,300 materials; 152,175 conversion. 152,175 materials; 158,300 conversion. 158,300 materials; 144,375 conversion. 129,050 materials; 152,175 conversion. 129,050 materials; 144,375 conversion.

Answer 1

Skye Manufacturing

Painting Department

Equivalent units:

158,300 materials; 152,175 conversion

Step-by-step explanation:

a) Data and Calculations:

Beginning WIP = 39,000 units; Degree of completion: 75% materials and 20% conversion.

Units started during the month = 134,000

Units completed and transferred out = 148,500

Ending units of WIP = 24,500

Equivalent units, using the weighted average method of process costing:

Units Materials Conversion

Units transferred out 148,500 148,500 (100%) 148,500 (100%)

Ending Work in Process 24,500 9,800 (40%) 3,675 (15%)

Total equivalent units 158,300 152,175