Question

Williams Company uses the weighted-average method in its process costing system.

The Packaging Department started the month with 400 units in process that were 80% complete, receiving 3,000 units from the Cutting Department. The packaging department had 300 units in process at the end of the period that are 50% complete.



All materials are added at the beginning of the process and conversion is added uniformly.



From the Packaging Department, units are transferred to Finished Goods.

For direct material, the equivalent units of production for the Packaging Department is ________.

Answer 1

Actually, the answer is 3400 units

Step-by-step explanation:

First, determine how many units were completed and transfered out of the Packaging Department:

Completed & transferred out

= Beginning work-in-process + Transferred in – Ending work-in-process

= 400 + 3,000 – 300

= 3,100 units completed and transferred

Next, calculate the equivalent units of production for direct material:

Completed units:

3,100 units

x

100%

=

3,100 EUP for direct materials

In process units:

300 units

x

100%

=

300 EUP for direct materials

Total EUP for direct materials

=

3,400 EUP for direct materials

For in process units, use 100% becuse the direct materials are added at the beginning of the process If the units are started, then 100% of the materials have been added.

Answer 2

Equivalent units of production for the finishing department: 3250