Question

Beginning inventory for the month contained 3,000 units that were 60 percent complete with respect to materials. During the month, 50,000 units were completed and transferred out. Ending inventory contained 5,000 units, 30 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be:(A) 51,500(B) 49,500(C) 50,000(D) 50,300

Answer 1

Option A is correct (51,500 units)

Step-by-step explanation:

Number of units completed and transferred during the month=50,000 units

Ending Inventory units=5,000 units

Completed units in ending inventory with respect to material=30% of 5000.

Completed units in ending inventory with respect to material=5000*0.3

Completed units in ending inventory with respect to material=1,500 units

To find:

The weighted average equivalent units of production for materials for the month ?

Solution:

Equivalent units of production for material= Units completed and transferred out + Completed units in ending inventory with respect to material.

Equivalent units of production for material=50,000+1,500

Equivalent units of production for material=51,500 units.

Option A is correct (51,500 units)