Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: $$\begin{array}{l}
\begin{array} { l r r r r r }
&&&\text { Costs }\
& \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \
\text { Work in process, July 1 } & 30 & \$ 1,590 & \$ 0 & \$ 513 \
\text { Transferred in during July } & ? & & & & \
\text { Completed during July } & 105 & & & & \
\text { Work in process, July 31 } & 15 & & & & \
\text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767
\end{array}
\end{array}$$ The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for transferred-in units using weighted average would be

Question

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: $$\begin{array}{l}
\begin{array} { l r r r r r } 
&&&\text { Costs }\
& \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \
\text { Work in process, July 1 } & 30 & \$ 1,590 & \$  0 & \$ 513 \
\text { Transferred in during July } & ? & & & & \
\text { Completed during July } & 105 & & & & \
\text { Work in process, July 31 } & 15 & & & & \
\text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767
\end{array}
\end{array}$$ The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for transferred-in units using weighted average would be

Quizplus · Accepted Answer

Equivalent units for transferred-in costs under the weighted average method are calculated by adding the units completed during the period to the equivalent units in ending inventory, considering the units in beginning inventory are already accounted for as they were transferred in from a previous process or period. Here, 105 units were completed and transferred out, and there are 15 units in ending inventory. Since materials are added at the end of the process, and the question specifically asks for transferred-in units, we consider all units transferred in plus the work done on the beginning and ending inventories. The calculation for equivalent units does not directly involve the percentage completion of the conversion process for transferred-in costs. Therefore, the equivalent units for transferred-in costs are the total units accounted for during the period, which is 105 completed units + 15 units in ending inventory = 120 units.

Mountainside Industries Manufactures Specialized Plastic Boxes in Two Processes: Molding