Assume a company's beginning work in process consists of 20,000 units, 40% complete. Materials are added at the beginning of the process. During the month, 90,000 units are transferred in. The ending work in process consists of 10,000 units, 50% complete.
Using the weighted average method, the equivalent units of production for the month are:
Transferred In Materials Conversion Costs
A) 110,000 100,000 65,000
B) 90,000 100,000 97,000
C) 110,000 110,000 105,000
D) 105,000 60,000 100,000

Question

Quizplus · Accepted Answer

Equivalent units of production using the weighted average method are calculated by adding the units transferred out to the equivalent units in ending work in process. For materials, since they are added at the beginning, all units (beginning, transferred in, and ending) are 100% complete, making it 110,000 (90,000 transferred in + 20,000 beginning work in process, since they are 100% complete for materials). For conversion costs, the calculation includes the work done on the beginning inventory, the units transferred out, and the work done on the ending inventory. The beginning work in process is 40% complete for 20,000 units, which is 8,000 equivalent units. The units transferred out are fully processed during the period, so all 90,000 units count. The ending work in process is 50% complete for 10,000 units, which is 5,000 equivalent units. Adding these together gives 103,000 equivalent units for conversion costs. However, since none of the options exactly match this calculation for conversion costs, and considering the context of the question, it seems there might have been a misunderstanding in the calculation process or a typo in the options. Based on the provided options, the closest match to the correct approach for calculating equivalent units for materials and conversion costs would be option C, assuming it intended to represent the correct methodology for calculation despite the numerical discrepancy in conversion costs.

Assume a Company's Beginning Work in Process Consists of 20,000