Question

A production department's output for the most recent month consisted of 12,500 units completed and transferred to the next stage of production and 12,500 units in ending Work in Process inventory. The units in ending Work in Process inventory were 65% complete with respect to both direct materials and conversion costs. There were 1,500 units in beginning Work in Process inventory, and they were 85% 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

20,625 units

Step-by-step explanation:

Calculation for the equivalent units of production

Using this formula

Equivalent units of production=Units completed+Ending work in process inventory

Let plug in the formula

Equivalent units of production=12,500+(12,500×65%)

Equivalent units of production=12,500+8,125

Equivalent units of production=20,625 units

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Therefore the equivalent units of production for the month is 20,625 units.