Masters Clothing had 40,000 shirts in process at May 31 50% converted).All materials are added at the beginning of the production process.During the month, 140,000 shirts were transferred to Finished Goods Inventory.There was no beginning inventory.The equivalent units for materials costs for May using the weighted-average method are _____shirts.

Question

Quizplus · Accepted Answer

180,000Since all materials are added at the beginning of the production process, the equivalent units for materials for the shirts completed and transferred out (140,000 shirts) plus the shirts in process at the end of the month (40,000 shirts, which are 100% complete with respect to materials since materials are added at the beginning) equals 180,000 equivalent units for materials costs.

Masters Clothing Had 40,000 Shirts in Process at May 31