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13 August, 03:34

The Townson Manufacturing Company has gathered the following information for the month of September: 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs). 60,000 units were started into production. 50,000 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?

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  1. 13 August, 03:37
    0
    Answer: 66,000 units

    Explanation:

    Opening inventory is 6,000

    Add production is 60,000

    Total Available is 66,000

    Less closing inventory (16,000)

    Total output 50,000

    Closing inventory is the balancing figure since 50,000 were completed and available unit was 66,000

    Using weighted availability means we assume 100% completion amd take the average

    Equivalent Units=

    Total output (50,000*100%) = 50,000units

    Ending Inventory (16,000*100%) = 16,000 units

    Total Equivalent Unit is 66,000 units
  2. 13 August, 03:43
    0
    The equivalent units of production (EUPs) for materials in the month of September are 66,000.

    Explanation:

    Equivalent units of production (EUPs) are units in the work in process inventory calculated with regard to their degree of completion.

    Using the weighted average method means we assume 100 percent completion of units. Hence, the 6,000 units that are actually 75 percent complete with regard to materials are treated simply as 6,000 units.

    Calculation of EUPs for materials in September:

    Units completed and transferred out 50,000

    Beginning work-in-process 6,000

    Units started into production 60,000

    Less: Units completed and transferred (50,000)

    Ending work-in-process 16,000

    Total equivalent units of production 66,000
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