Jimbob Co.uses the weighted-average method in its process costing system.The company adds all required materials at the beginning of the process in Department A,which is the first of two stages in its production process.Information concerning operations in the Department A in October follows: What were the equivalent units of production in Department A in October?
A) 6,000 units.
B) 12,000 units.
C) 44,000 units.
D) 56,000 units.

Question

Jimbob Co.uses the weighted-average method in its process costing system.The company adds all required materials at the beginning of the process in Department A,which is the first of two stages in its production process.Information concerning operations in the Department A in October follows:  What were the equivalent units of production in Department A in October?
A) 6,000 units. 
B) 12,000 units. 
C) 44,000 units. 
D) 56,000 units.

Quizplus · Accepted Answer

To calculate equivalent units of production in Department A, we need to add the equivalent units of production for materials and conversion costs.

Equivalent units of production for materials = Units completed and transferred out + equivalent units of production in ending work in process inventory = 40,000 + 4,000 = 44,000

Equivalent units of production for conversion costs = Units completed and transferred out + equivalent units of production in ending work in process inventory = 40,000 + 4,000 = 44,000

Total equivalent units of production = Equivalent units of production for materials + Equivalent units of production for conversion costs = 44,000 + 44,000 = 88,000

However, since the question is asking specifically about Department A, we only consider the equivalent units of production for materials in Department A. Therefore, the answer is 12,000 units (equivalent units of production for materials).

Jimbob CoUses the Weighted-Average Method in Its Process Costing System