A company's beginning Work in Process inventory consisted of 35,000 units that were 90% complete with respect to direct labor. A total of 105,000 were finished during the period and 40,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

Question

Sage Hartman

Business

6 August, 15:22

A company's beginning Work in Process inventory consisted of 35,000 units that were 90% complete with respect to direct labor. A total of 105,000 were finished during the period and 40,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

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Patience Pollard · Answer 1

equialent units for labor: 125,000

Explanation:

W/A equivalent units:

completed units 105,000

ending WIP inventory:

physical units x percentage of completion

40,000 x 50% 20,000

Total 125,000

on the weighted average method we do not subtract the beginning inventory as the cost are calcualte on average rather than order there is no need to.