During March, the production department of a process operations system completed and transferred...
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During March, the production department of a process operations system completed and transferred to finished goods 21,000 units that were in process at the beginning of March and 190,000 units that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 63% complete with respect to conversion. At the end of March, 38,000 additional units were in process in the production department and were 100% complete with respect to materials and 20% complete with respect to conversion.
Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.
a) 249,000; 249,000.
b) 228,000; 205,370 .
c) 211,000; 197,600.
d) 218,600; 218,600.
e) 249,000; 218,600.
Weighted average method for equivalent units computation:
Under weighted average method equivalent units are computed based on the completed units and the percentage of work done on the ending inventory units. This method ignores the work done on the beginning inventory units.
Answer and Explanation: 1
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View this answerThe correct answer is option (e).
The number of equivalent units for direct materials and conversion costs is 249,000 and 218,600, respectively.
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The Weighted-Average Method of Equivalent Units of Production
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Chapter 4 / Lesson 8
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Learn about how to use the weighted-average method of equivalent units of production in accounting. Use conversion to find the number of equivalent goods, while remembering the goods transferred out for the cost reconciliation report.
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