Question

During March, the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion. Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method. A. 165,000 materials; 165,000 conversion. B. 140,000 materials; 130,250 conversion. C. 135,000 materials; 119,000 conversion. D. 165,000 materials; 144,000 conversion. E. 144,000 materials; 144,000 conversion.

Answer 1

D. 165,000 materials; 144,000 conversion.

Step-by-step explanation:

Production Department

Equivalent Units

Weighted Average Method

First we will find out the transferred units

Beginning Units 25,000

Units Started 110,000

Units Completed and Transferred Out 135,000

Particulars Units % Completed Equivalent Units

Mat. Conversion Mat. Conversion

Units Completed 135,000 100 100 135,000 135,000

Ending WIP 30,000 100 30 30,000 9000

Total Equivalent Units 165,000 144,000

We find the equivalent units by adding the transferred out units with the percent of the ending work in process units in the average weighted method.

Answer 2

D. 165,000 materials; 144,000 conversion.

Step-by-step explanation:

The concept of equivalent units measures the number of units in terms of percentage completion in the inputs introduced to outputs.

Calculation of the number of equivalent units with respect to both materials and conversion respectively for March.

Materials

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 100%) = 30,000

Total Equivalent units of Production = 165,000

Materials

Units Completed and Transferred (135,000 × 100%) = 135,000

Units in Ending Work in Process (30,000 × 30%) = 9,000

Total Equivalent units of Production = 144,000

Conclusion :

The equivalent units of production are 165,000 materials; 144,000 conversion.