Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials. 55,000 units were completed and transferred out during the month. 5,500 units were in ending inventory, 10 percent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be
A)55,000 units.
B)55,550 units.
C)56,500 units.
D)57,550 units.

Question

Quizplus · Accepted Answer

The weighted average equivalent units of production for materials is calculated by adding the completed units to the equivalent units in the beginning and ending inventory. For the beginning inventory, 3,000 units were 35% complete, which equals 1,050 equivalent units (3,000 units * 35%). For the ending inventory, 5,500 units were 10% complete, which equals 550 equivalent units (5,500 units * 10%). Adding these to the completed units gives 55,000 + 1,050 + 550 = 56,600 equivalent units. However, the beginning inventory's work is not added again since it's part of the units completed and transferred out. Therefore, the correct calculation is 55,000 units completed and transferred out + 550 equivalent units from the ending inventory = 55,550 units.

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