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7 September, 11:01

A company's beginning Work in Process inventory consisted of 20,000 units that were 20% complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were 40% complete 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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  1. 7 September, 11:05
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    88,000 equivalent units for the period

    Explanation:

    one way : work on beginning + started - incomplete ending

    20,000 x (1 - 0.2) = 16,000 units work on BI WIP during the period

    90,000 units started

    30,000 x (1 - 0.4) = (18,000) unfinished equivalent units

    88,000 equivalent units for the period.

    Other way: work on beginning + start and trasnferred + work on ending

    20,000 x (1 - 0.2) = 16,000 units work on BI WIP during the period

    60,000 started and transferred-out

    30,000 x. 4 = 12,000 work on ending WIP

    88,000 equivalent units for the period.

    Other way: transferred out + work on ending - previous work on beginning

    80,000 transferred out

    30,000 x. 4 = 12,000 work on ending WIP

    20,000 x. 2 = (4,000) previous work on beginning

    88,000 equivalent units for the period.
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