A production department's output for the most recent month consisted of 18,000 units completed and transferred to the next stage of production and 18,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 80% complete with respect to both direct materials and conversion costs. There were 2,600 units in beginning Work in Process inventory, and they were 80% 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.

Question

James Roach

Business

29 July, 13:53

A production department's output for the most recent month consisted of 18,000 units completed and transferred to the next stage of production and 18,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 80% complete with respect to both direct materials and conversion costs. There were 2,600 units in beginning Work in Process inventory, and they were 80% 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.

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Answers (1)

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Omar Castro · Answer 1

32,400 units

Explanation:

Unit completed and transferred to next stage 18,000 units

Units in ending goods in process inventory (18,000 units * 80% complete) 14,400 units

Total 32,400 units

Therefore the equivalent units of production for the month, assuming the company uses the weighted average method will be $32,400 Units