Hulkster 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:

Question

Quizplus · Accepted Answer

The equivalent units for materials costs using the weighted-average method include all units completed and transferred out plus the equivalent units in ending inventory. Since all materials are added at the beginning, the equivalent units for materials are the 140,000 shirts transferred out plus the 40,000 shirts in process (since they are 100% complete for materials), totaling 180,000 shirts.

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