Madison Corporation's production cycle starts in the Processing Department. The following information is available for April: Units Work-in-process, April 1 (25% complete) 58,000 Total units in process during April298,000 Work-in-process, April 30 (60% complete) 34,000 Materials are added at the beginning of the process in the Processing Department. What are the equivalent units of production for the month of April, assuming Madison uses the weighted-average method?

Equivalent Units of Production:

(1) Materials = 298000

(2) Conversion Costs = 284400

(3) Total = 582400

Explanation:

The Concept of Equivalent Units entails identifying number of completed units in terms of their completion % in the input component or process.

Step 1 : Determine Units Completed and Transferred to Finished Goods

Units in Process = Units Output

Units In Process 298000

Less Closing Work In Process 34000

Completed and Transferred 264000 (Balancing figure)

Step 1 : Determine Equivalent Units for each input component

Materials:

Completed and Transferred 100% = 264000*100% = 264000

Closing Work In process 100% = 34000*100% = 34000

Total = 298000

Conversion Costs:

Completed and Transferred 100% = 264000*100%=264000

Closing Work In process 60%=34000*60%=20400

Total = 284400