EA3.

LO 5.3Given the following information, determine the equivalent units of ending work in process for materials and conversion under the weighted-average method:

beginning inventory of 2,500 units is 100% complete with regard to materials and 60% complete with regard to conversion

18,000 units were started during the period

17,500 units were completed and transferred

ending inventory is 100% complete with materials and 65% complete with conversion

3,000 units and 1,950 units

Explanation:

For computing the equivalent units of ending work in process for materials and conversion cost, first we have to determine the ending work in process units which is shown below:

Ending work in process units = Beginning inventory + units started - units completed and transferred

= 2,500 units + 18,000 units - 17,500 units

= 3,000 units

Now the equivalent units of ending work in process for materials would be

= 3,000 units * 100%

= 3,000 units

And, for conversion cost it would be

= 3,000 units * 65%

= 1,950 units