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15 July, 17:14

Beginning inventory of Talisman Inc. for the month had 3,600 units that were 65% complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 6,000 units that were 40% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be:

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  1. 15 July, 17:37
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    The weighted average equivalent units of production for materials for the month would be 62,400 units

    Explanation:

    Consider the following formula:

    Equivalent units of production for materials = Units completed and transferred out + Units in ending WIP * % of completion

    = 60000 + (6000*40%)

    = 62,400 units
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