Question

A production department's output for the most recent month consisted of 12,000 units completed and transferred to the next stage of production and 12,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 80% complete with respect to both direct materials and conversion costs. There were 1,400 units in beginning Work in Process inventory, and they were 90% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Answer 1

The equivalent units of production for the month, assuming the company uses the weighted average method would be 21,600 units

Step-by-step explanation:

In order to calculate the equivalent units of production for the month, assuming the company uses the weighted average method, we would have to calculate first the following:

Units completed and transferred=physical units×%complete

Units completed and transferred=12,000×100%

Units completed and transferred=12,000 units

Ending goods in process=12,000×80%=9,600 units

Therefore, the equivalent units of production for the month= Units completed and transferred+Ending goods in process

equivalent units of production for the month=12,000+9,600

equivalent units of production for the month=21,600 units