Red Company had Work-in-Process Inventories that were 45% complete at the start of the month. Work-in-Process at the end of the month was 10% complete. Materials were added at the beginning of the process. If weighted-average process costing is used, the total equivalent units for materials will equal the number of units A. transferred out during the period. B. started and completed during the period. C. started into the process during the period. D. transferred out during the process plus the units in the ending inventory.

Question

Van Goodman

Business

30 January, 10:31

Red Company had Work-in-Process Inventories that were 45% complete at the start of the month. Work-in-Process at the end of the month was 10% complete. Materials were added at the beginning of the process. If weighted-average process costing is used, the total equivalent units for materials will equal the number of units A. transferred out during the period. B. started and completed during the period. C. started into the process during the period. D. transferred out during the process plus the units in the ending inventory.

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Boston Watson · Answer 1

D. transferred out during the process plus the units in the ending inventory.

Explanation:

Using the Weighted - Average process costing the equivalent units of production always equals the units completed and transferred plus equivalent units remaining in work in process.

Remember that to calculate the equivalent units remaining must multiplicate the units per the percentage of completion. In this case, the percentage is 100% of materials for the units remaining because were added at the beginning of the process.