Question

A production department's output for the most recent month consisted of 8,400 units completed and transferred to the next stage of production and 5,400 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% 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

Equivalent units of production = 11,640 units

Step-by-step explanation:

Equivalent units of production = Completed and transferred unit + Ending Work in Process inventory*60%

Equivalent units of production = 8,400 + (5,400 * 60%)

Equivalent units of production = 8,400 + 3,240

Equivalent units of production = 11,640 units