Stryker Industries produces stethoscopes made from steel and rubber that begin in the molding department before being transferred to the assembly department. After the products have been assembled, they are packaged and shipped to customers across the country. The following production information has been gathered for the month of June:
Using the Weighted-Average method, calculate the equivalent units of production for Transferred-In (TI), Direct Materials (DM), and Conversion Costs (CC) during the month of June. (Round units to nearest whole number.)

Question

Stryker Industries produces stethoscopes made from steel and rubber that begin in the molding department before being transferred to the assembly department. After the products have been assembled, they are packaged and shipped to customers across the country. The following production information has been gathered for the month of June:
 Using the Weighted-Average method, calculate the equivalent units of production for Transferred-In (TI), Direct Materials (DM), and Conversion Costs (CC) during the month of June. (Round units to nearest whole number.)

Quizplus · Accepted Answer

In this question, the equivalent units of production will need to be calculated for three different cost categories using the Weighted-Average method. For Transferred-In and Direct Materials costs, this will be equal to (Units Completed this Period × Percentage of Costs Added) + (Units in Ending WIP Inventory × Percentage of Costs Added) = ((993 units + 6,456 units) × 100%) + (1,004 units × 100%) = 7,449 units + 1,004 units = 8,453 units. For Conversion Costs, this will be equal to (Units Completed this Period × Percentage of Costs Added) + (Units in Ending WIP Inventory × Percentage of Costs Added) = (7,449 units × 100%) + (1,004 × 32%) = 7,449 units + 321 units = 7,770 units.

Stryker Industries Produces Stethoscopes Made from Steel and Rubber That