Question

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production.

Beginning Work in Process (40% complete, $1,100) 200 units
Ending inventory of Work in Process (80% complete) 400 units
Total units started during the year 3,200 units

Answer 1

The equivalent units of production 3,320 units

Step-by-step explanation:

Equivalent units is the amount of work done in the manufacturing process at the end of the period. It includes fully completed units and partially completed units.

Equivalent units of production = ( Beginning work in process + Numbers of units started during the year ) - Incomplete units at the end of the period

Equivalent units of production = ( 200 units + 3,200 units ) - ( 400 units x ( 100% - 80% ) )

Equivalent units of production = 3,400 units - 80 units

Equivalent units of production = 3,320 units