The Townson Manufacturing Company has gathered the following information for the month of September:
• 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs).
• 60,000 units were started into production.
• 50,000 units were completed and transferred to the next department.
• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.
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What are the equivalent units of production (EUPs) for materials in the month of September assuming Townson uses weighted-average process costing?
A) 52,000 EUPs
B) 64,500 EUPs
C) 66,000 EUPs
D) 61,500 EUPs

Question

Quizplus · Accepted Answer

The equivalent units of production for materials under weighted-average process costing is calculated as the units completed and transferred out plus the equivalent units in ending inventory. Here, 50,000 units were completed and transferred out, and the ending inventory is 16,000 units (6,000 beginning + 60,000 started - 50,000 completed), which are 100% complete for materials. Therefore, EUPs for materials = 50,000 + 16,000 = 66,000.

The Townson Manufacturing Company Has Gathered the Following Information for the Month