Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below: All materials are added at the beginning of processing in the Assembly Department.
-The equivalent units for material for the month, using the weighted-average method, is:
A) 81,000
B) 90,000
C) 70,000
D) 80,000

Question

Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below:  All materials are added at the beginning of processing in the Assembly Department.
-The equivalent units for material for the month, using the weighted-average method, is:
A) 81,000 
B) 90,000 
C) 70,000 
D) 80,000

Quizplus · Accepted Answer

The weighted-average method takes into account the units started and completed during the period, as well as the units in ending work in process inventory. Based on the table, there were 75,000 units completed, 5,000 units in ending work in process inventory that were 40% complete, and 10,000 units started and still in process that are 60% complete. Therefore, the total equivalent units of material is 75,000 + (5,000 x 0.4) + (10,000 x 0.6) = 90,000.

Details of the Manufacturing Activity in Amy Company's Assembly Department