Beginning inventory for the month contained 3,000 units that were 60 percent complete with respect to materials.During the month,50,000 units were completed and transferred out.Ending inventory contained 5,000 units,30 percent complete with respect to materials.The weighted average equivalent units of production for materials for the month would be
A)50,000
B)51,500
C)50,300
D)49,500

Question

Quizplus · Accepted Answer

The weighted average method calculates equivalent units by adding units completed and transferred out to the equivalent units in ending inventory. Here, 50,000 units were completed, and the ending inventory of 5,000 units is 30% complete, giving 1,500 equivalent units (5,000 * 0.3). Thus, the total equivalent units for materials is 50,000 + 1,500 = 51,500.

Beginning Inventory for the Month Contained 3,000 Units That Were