Question

EA4.

LO 5.3There were 1,700 units in beginning inventory that were 40% complete with regard to conversion. During the month, 8,550 units were started and 9,000 were transferred to finished goods. The ending work in process was 60% complete with regard to conversion costs, and materials are added at the beginning of the process. What is the total amount of equivalent units for materials and conversion at the end of the month using the weighted-average method?

Answer 1

The total amount of equivalent units for materials and conversion are 10.250 units and 9,750 units respectively.

Step-by-step explanation:

Calculation of Material equivalent units

Closing units = 1700 + 8550 - 9000 = 1250

In weighted average period cost for material include both cost of opening stock material and cost of material incurred in the period.

Eq material = 1700 + 8550 = 10.250 units

(opening units losts it identity)

Calculation of Conversion Cost equivalent units

Eq conversion cost = 1700 + 8550 - (1250 *%40)

= 9,750 units