Question

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Units of Product Percent of Conversion Added Beginning Work in Process 230,000 60 % Units started 570,000 100 % Units completed 620,000 100 % Ending Work in Process 180,000 70 %

Answer 1

Total Equivalent Units Conversion 746,000

Step-by-step explanation:

Breakfast Cereal Maker

Weighted-Average Inventory Method

Total Equivalent Units

Units Conversion Equivalent Units

Particulars %

Units completed 620,000 100 % 620,000

Add Ending WIP 180,000 70 % 126,000

Total Equivalent Units 746,000

The total Equivalent units are obtained by adding the percent of the units in the ending work in process inventory to the units completed and transferred out. This is the average weighted method of finding the equivalent units.

As only conversion is required we found out the conversion units only.