The following information summarizes the activities in the Sewing Department for the month of October.
Assume that the company uses the weighted average method and that during October, the equivalent units completed with respect to materials is 92,000, and the equivalent units completed with respect to conversion costs is 82,400.
What was the beginning inventory?

Question

The following information summarizes the activities in the Sewing Department for the month of October.
 Assume that the company uses the weighted average method and that during October, the equivalent units completed with respect to materials is 92,000, and the equivalent units completed with respect to conversion costs is 82,400.
What was the beginning inventory?

Quizplus · Accepted Answer

11ee472f_ef01_784f_a6cd_6dcae99aa98d_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, 92,000 units, we can solve for total units completed and transferred out: X + 16,000 = 92,000. Thus, X = 76,000. The problem tells us that 68,000 units are started and completed. Thus, an extra 8,000 units were completed that weren't started this period: 76,000 - 68,000 = 8,000. These units are the beginning inventory.
 11ee472f_ef01_7850_a6cd_a9680c8a1427_TBCB1009_00

The Following Information Summarizes the Activities in the Sewing Department