Department B had a beginning inventory of 400 units, 1/4 completed; an ending inventory of 300 units, 2/3 completed, and received 900 units during the period from Department A. What was the equivalent unit production of Department B, assuming weighted-average process costing? A. 800 units. B. 900 units. C. 1,100 units. D. 1,200 units. E. 1,400 units

Question

Business

Kara Baird

25 May, 23:11

Department B had a beginning inventory of 400 units, 1/4 completed; an ending inventory of 300 units, 2/3 completed, and received 900 units during the period from Department A. What was the equivalent unit production of Department B, assuming weighted-average process costing? A. 800 units. B. 900 units. C. 1,100 units. D. 1,200 units. E. 1,400 units

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Answers (1)

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Macey Stafford · Answer 1

The correct answer is D 1,200 units.

Explanation:

The weighted average method includes costs in beginning inventory and current period costs to establish an average cost per unit. The first-in-first-out (FIFO) method keeps beginning inventory costs separate from current period costs and assumes that beginning inventory units are completed and transferred out before the units started during the current period are completed and transferred out.

In this example, the resolution is:

1,000 + (300 * 2/3) = 1,200