The Townson Manufacturing Company has gathered the following information for the month of September: 8,100 units in the beginning Work-in-Process Inventory (90% complete as to materials, 1/3 complete with respect to the conversion costs). 67,000 units were started into production. 57,000 units were completed and transferred to the next department. The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs. What are the equivalent units of production (EUPs) for materials in the month of September assuming Townson uses weighted-average process costing

The equivalent unit of production = 63,787.5 units

Explanation:

Given dа ta:

Unit transferred out = 57,000 units

Beginning work = 8,100 units

units started = 67,000 units

Units transferred out = beginning work + units started - Ending inventory

57,000 = 8,100 + 67,000 - Ending inventory

57,000 = 75100 - Ending inventory

Ending inventory = 75100 - 57,000

= 18,100

Equivalent units of production for conversion cost = Units transferred out + (3/8 * ending inventory)

= 57,000 + (3/8 * 18,100)

= 57,000 + 6787.5

= 63,787.5

Therefore, the equivalent unit of production = 63,787.5 units

Equivalent Units Production Cost = 63,787.5

Explanation:

To find out the Equivalent unit production first we have to calculate the ending inventory;

To compute the ending inventory

Transferred Units = Beginning Work in Process + Started Units - Ending Inventory

Ending Inventory = Beginning Work in Process + Started Units - Transferred Units

Ending Inventory = 8100 + 67000 - 57000

Ending Inventory = 18,100

To compute the Equivalent unit production;

Equivalent Units Production Cost = Transferred Units + (3/8 * Ending Inventory)

Equivalent Units Production Cost = 57,000 + (3/8 * 18,100)

Equivalent Units Production Cost = 63,787.5