Humbert Inc., a factory that manufactures plastic ice cube trays, has opened a new department as of May 1 of this year. As of June 1, Humbert had 4,200 units that were 100% complete with respect to Direct Materials (DM) and 64% complete with respect to Conversion Costs (CC). During the year, Humbert started and completed 76,420 units. On June 30, they had 9,870 units remaining in inventory that were 100% complete with respect to Direct Materials and 42% complete with respect to Conversion Costs. What are the equivalent units of production for Direct Materials and Conversion Costs using the Weighted-Average method? (Round answer to the nearest unit)

Question

Quizplus · Accepted Answer

This question requires familiarity with calculating equivalent units for two different costs while also taking Weighted-Average into account, so that means that beginning inventory will not be factored in. For the Direct Materials, add the following: ((4,200 + 76,420) × 100%) + (9,870 × 100%) = 90,490 units. For Conversion Costs, add the following: ((4,200 + 76,420) × 100%) + (9,870 × 42%) = 80,620 + 4,145.40 = 84,765.4 = 84,765 units.