The following information summarizes the activities in the Mixing Department for the month of March:
Assume that the company uses the weighted average method and that, during March, the equivalent units completed with respect to materials is 57,000 and the equivalent units completed with respect to conversion costs is 52,500.
What was the beginning inventory?

Question

The following information summarizes the activities in the Mixing Department for the month of March:
 Assume that the company uses the weighted average method and that, during March, the equivalent units completed with respect to materials is 57,000 and the equivalent units completed with respect to conversion costs is 52,500.
What was the beginning inventory?

Quizplus · Accepted Answer

11ee472f_ef01_2a26_a6cd_377581c3901e_TBCB1009_00 The red numbers are given in the problem. Start by looking at the Direct Materials column. Since the total equivalent units for materials is given, 57,000 units, we can solve for total units completed and transferred out: X + 6,000 = 57,000. Thus, X = 51,000. The problem tells us that 49,000 units are started and completed. Thus, an extra 2,000 units were completed that weren't started this period: 51,000 - 49,000 = 2,000. These units are the beginning inventory.
 11ee472f_ef01_2a27_a6cd_c51cc76e3870_TBCB1009_00

The Following Information Summarizes the Activities in the Mixing Department