Question

During November, the production department of a process operations system completed and transferred to finished goods 26,000 units that were in process at the beginning of November and 120,000 units that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 45% complete with respect to conversion. At the end of November, 33,000 additional units were in process in the production department and were 100% complete with respect to materials and 65% complete with respect to conversion.

Required:
Compute the number of equivalent units with respect to materials for November using the weighted-average method.

Answer 1

Equivalent Units = 179,000

Step-by-step explanation:

Number of units completed and transferred out = Units in beginning + Units started and completed during the month

= 26,000 + 120,000

= 146,000 units

Equivalent Units = Number of units completed and transferred out + (Additional units in process *Percentage completed)

= 146,000 + 33,000*100%

= 146,000 + 33,000

= 179,000

Therefore, the number of equivalent units using the weighted-average method is 179,000