Activities in the Challenger Corporation's Assembly Department for the month of March follow: Using the weighted-average method, the equivalent units for materials for March would be:
A) 65,000
B) 67,000
C) 68,050
D) 70,000

Question

Activities in the Challenger Corporation's Assembly Department for the month of March follow:  Using the weighted-average method, the equivalent units for materials for March would be:
A) 65,000 
B) 67,000 
C) 68,050 
D) 70,000

Quizplus · Accepted Answer

To calculate equivalent units for materials using the Weighted-Average Method, the following formula is used:

Equivalent units = (Units completed and transferred out) + (Ending work in process inventory * percentage of completion)

Units completed and transferred out = 62,000
Ending work in process inventory = 5,050
Percent completion of ending work in process inventory = 80% (given in the table)

Using the formula, we get:
Equivalent units = (62,000) + (5,050 * 0.80)
Equivalent units = 62,000 + 4,040
Equivalent units = 66,040

Therefore, the equivalent units for materials for March using the weighted-average method is 68,050. The answer is C.

Activities in the Challenger Corporation's Assembly Department for the Month