A production department's output for the most recent month consisted of 19,000 units completed and transferred to the next stage of production and 19,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. There were 2,800 units in beginning Work in Process inventory, and they were 70% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Question

Sheldon Lambert

Business

23 November, 18:37

A production department's output for the most recent month consisted of 19,000 units completed and transferred to the next stage of production and 19,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. There were 2,800 units in beginning Work in Process inventory, and they were 70% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

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Kaufman · Answer 1

28,500 units

Explanation:

Total completed units = 19,000

Which comprises opening incomplete units 2,800 completed during the month. Therefore completed units = 19,000

Equivalent completed units at month end = 19,000 which are 50% complete for both materials and overheads.

Therefore it is equivalent to 19,000 X 50% = 9,500 units

Total equivalent units of production for the month = 19,000 + 9,500 = 28,500 units

Net Equivalent Units at month end = 28,500