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8 September, 14:00

During the period, 50,000 units were completed, and 3,600 units were on hand at the end of the period. If the ending work in process inventory was 75 percent complete as to direct materials and 25 percent complete as to conversion costs, the equivalent units for direct materials under the weighted-average method would be

a) 48,000

b) 52,700

c) 47,700

d) 45,900

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Answers (1)
  1. 8 September, 16:21
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    Equivalent units for direct material = 52,700

    Explanation:

    Given:

    Completed units = 50,000

    Ending inventory = 3,600 units

    Ending work in process inventory = 75% complete as to direct materials

    Ending work in process inventory = 25% as to conversion costs

    Equivalent units for direct material = ?

    Computation of equivalent units for direct material:

    Equivalent units for direct material = Completed units + [Ending inventory * 75% complete as to direct material]

    Equivalent units for direct material = 50,000 + [3,600 * 75%]

    Equivalent units for direct material = 50,000 + [2,700]

    Equivalent units for direct material = 52,700
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