Figure 6-7. Geller Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March.
The beginning inventory was 70 percent complete for materials and 30 percent complete for conversion costs.The ending inventory was 90 percent complete for materials and 50 percent complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials,$44,400; conversion cost $30,500.
Costs incurred during March are: materials used,$588,000; conversion cost $624,000.
Refer to Figure 6-7.Using the weighted average method the total equivalent units of production for direct materials is:

Question

Figure 6-7. Geller Manufacturing uses a process cost system to manufacture sensors for the security industry.The following information pertains to operations for the month of March.
 The beginning inventory was 70 percent complete for materials and 30 percent complete for conversion costs.The ending inventory was 90 percent complete for materials and 50 percent complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials,$44,400; conversion cost $30,500.
Costs incurred during March are: materials used,$588,000; conversion cost $624,000.
Refer to Figure 6-7.Using the weighted average method the total equivalent units of production for direct materials is:

Quizplus · Accepted Answer

To calculate the total equivalent units of production for direct materials, we need to consider both the beginning inventory and the units started and completed during March.

Step 1: Calculate equivalent units for beginning inventory

Materials: 
70% of 10,000 units = 7,000 units

Conversion costs: 
30% of 10,000 units = 3,000 units

Step 2: Calculate equivalent units for units started and completed during March

Materials: 
Units started and completed during March = 100,000 units 
Equivalent units = Units completed during March + (Ending inventory * percentage complete) 
Equivalent units = 100,000 + (20,000 * 90%) 
Equivalent units = 118,000 units

Conversion costs: 
Units started and completed during March = 100,000 units 
Equivalent units = Units completed during March + (Ending inventory * percentage complete) 
Equivalent units = 100,000 + (10,000 * 50%) 
Equivalent units = 105,000 units

Step 3: Calculate total equivalent units

Materials: 
Total equivalent units = Equivalent units for beginning inventory + Equivalent units for units started and completed during March 
Total equivalent units = 7,000 + 118,000 
Total equivalent units = 118,000 units

Conversion costs: 
Total equivalent units = Equivalent units for beginning inventory + Equivalent units for units started and completed during March 
Total equivalent units = 3,000 + 105,000 
Total equivalent units = 108,000 units

Therefore, using the weighted average method, the total equivalent units of production for direct materials is 118,600 units.