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9 April, 12:47

Department B had a beginning inventory of 2,400 units, 25% completed; an ending inventory of 2,700 units, 2/3 completed, and received 4,900 units during the period from Department A. What was the equivalent unit production of Department B, assuming weighted-average process costing? 4,900 units. 4,000 units. 6,700 units. 6,400 units.

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  1. 9 April, 14:09
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    6,400 units.

    Explanation:

    Beginning inventory 2,400

    started during the period 4,900

    (transferred in from department A)

    Ending Inventory (2,700)

    Units completed 4,600

    Equivalent units

    completed units + ending inventory portion of completion

    4,600 + 2,700 x 2/3 = 6,400

    With weithed average method, we don't do the difference between portion of beginnign inventory completed and portion unfinished, we only do it with FIFO
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