A production department's output for the most recent month consisted of 9,100 units completed and transferred to the next stage of production and 6,100 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. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Question

Business

Shasta

29 June, 19:21

A production department's output for the most recent month consisted of 9,100 units completed and transferred to the next stage of production and 6,100 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. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

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David Rice · Answer 1

The equivalent units of production for the month is 12,150 units

Explanation:

The computation of the equivalent units of production for the month is shown below:

= Units completed and transferred * percentage of completion + ending units of work in progress inventory * percentage of completion

= 9,100 units * 100% + 6,100 units * 50%

= 9,100 units + 3,050 units

= 12,150 units

We consider both the units which are given in the question. The units completed and transferred is considered 100% while the ending work in progress units considered 50%