Question

The Assembly Department of​ GigaGo, Inc., manufacturer of​ computers, had 500 units of beginning inventory in​ September, and 5 comma 000 units were transferred to it by the Production Department. The Assembly Department completed 2 comma 500 units during the month and transferred them to the Packaging Department. Calculate the total number of units accounted for by the Assembly Department if it had 3 comma 000 units in ending inventory. The weightedminusaverage method is used.

A. 2, 500 units
B. 3, 500 units
C. 500 units
D. 3,000 units

Answer 1

A. 2, 500 units

Step-by-step explanation:

Beginning Units 500

Units Received 5,000

Total 5,500

Units Transferred to next department 2,500

Ending Inventory 3000

Total 5,500

Units to account for= Beginning Inventory + Units Started- Ending Inventory

= 500 +5000- 3000= 2500

This is the key feature of weighted average method that that equivalent units of activity is calculated without making a distinction as to whether activity occurred int the current accounting period or the preceding period.