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30 December, 00:10

Our company uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year: Beginning Work in Process (40% complete, $1,100) 200 units Ending inventory of Work in Process (80% complete) 400 units Total units started during the year3,200 units

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  1. 30 December, 03:21
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    Equivalent Units of Production (EUP) = 3,520 units

    Explanation:

    Units Completed = Beginning inventory units + Units Started - Ending Inventory

    Equivalent Units of Production (EUP) = Beginning Work in Process (WIP) + Started and Completed Units + Ending Work in Process (WIP) x % of conversion

    Units Completed = 200 + 3,200 - 400 = 3,000

    EUP = 200 + 3,000 + 400 x 80% = 3,520
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