Beginning inventory for the month contained 2,000 units that were 70 per cent complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 3,000 units, 20 per cent complete with respect to materials. The weighted average equivalent units of production for materials for the month would be
A)62,400
B)63,000
C)60,600
D)60,000

Question

Quizplus · Accepted Answer

To calculate the weighted average equivalent units of production for materials, we need to take into account the units that were partially complete at the beginning and end of the month.

Beginning inventory: 2,000 units x 70% complete = 1,400 equivalent units
Units started and completed during the month: 60,000 units
Ending inventory: 3,000 units x 20% complete = 600 equivalent units

Total equivalent units of production for materials: 1,400 + 60,000 + 600 = 62,000

Therefore, the weighted average equivalent units of production for materials for the month would be:

(1,400 x 100% + 60,000 x 100% + 600 x 20%) / 62,000 = 60,600

Thus, the correct answer is C, 60,600.

Beginning Inventory for the Month Contained 2,000 Units That Were