Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.

1. Compute the number of units transferred to finished goods.
2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.

Answer 1

a) Units transferred = 218,000 units

b)

Equivalent units of material 283,600

Equivalent units of conversion cost 283,600

Step-by-step explanation:

a) units transferred out

Units transferred = opening inventory + newly introduced - closing inventory

= 60,000 + 240,000 - 82,000= 218,000

Units transferred = 218,000 units

Equivalent units for material

Items units Equivalent units

Transferred out 218,000 100%×218,000 218,000

Closing inventory 82,000 80% × 82,000 65,060

Equivalent units 283,600

Equivalent units for conversion cost

Items units Equivalent units

Transferred out 218,000 100%×218,000 218,000

Closing inventory 82,000 30% × 82,000 24,600

Equivalent units 242,600

Equivalent units of material 283,600

Equivalent units of conversion cost 283,600