Question

Required information [The following information applies to the questions displayed below.] During April, the first production department of a process manufacturing system completed its work on 310,000 units of a product and transferred them to the next department. Of these transferred units, 62,000 were in process in the production department at the beginning of April and 248,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 84,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion. Compute the number of equivalent units with respect to both materials used and conversion used in the first production department for April using the weighted-average method.

Answer 1

Computation of Equivalent units

units Materials Conversion

Started & completed 248,000 248,000 248,000

Ending inventory 84,000 75,600 33,600

Equivalent units 323,600 281,600

Step-by-step explanation:

a) Data and Calculations:

Units transferred out = 310,000

Beginning inventory = 62,000 (70% materials and 30% conversion)

Started and completed = 248,000

Ending inventory = 84,000 (90% materials and 40% conversion)

b) Equivalent units are physical units expressed as finished units by multiplying the physical units with the degree of completion in terms of materials and conversion (labor and overheads).