A company had beginning work in process inventory of 10,000 units (50% complete for conversion costs). All materials are added at the beginning of the process. The company completed 150,000 units and the ending work in process consisted of 20,000 units (45% complete for conversion).
Calculate the TOTAL equivalent units for direct materials and conversion costs using the weighted average method.
We use equivalent units to compute the production cost in industries with a continuous manufacturing process. The equivalent unit is the weighted average of units completed and in-process with their completion percentage.
Answer and Explanation: 1
Computation of equivalent units for materials
|Units||% of completion||Product|
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fromChapter 6 / Lesson 2
Learn about equivalent units of production in economics and business with examples. Discover how equivalent units are calculated and analyzed by economists.