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18 July, 15:27

A production department's output for the most recent month consisted of 12,000 units completed and transferred to the next stage of production and 12,000 units in ending Work in Process inventory. The units in ending Work in Process inventory were 80% complete with respect to both direct materials and conversion costs. There were 1,400 units in beginning Work in Process inventory, and they were 90% 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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  1. 18 July, 15:51
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    The equivalent units of production for the month, assuming the company uses the weighted average method would be 21,600 units

    Explanation:

    In order to calculate the equivalent units of production for the month, assuming the company uses the weighted average method, we would have to calculate first the following:

    Units completed and transferred=physical units*%complete

    Units completed and transferred=12,000*100%

    Units completed and transferred=12,000 units

    Ending goods in process=12,000*80%=9,600 units

    Therefore, the equivalent units of production for the month = Units completed and transferred+Ending goods in process

    equivalent units of production for the month=12,000+9,600

    equivalent units of production for the month=21,600 units
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