The USA Company manufactures flags in a single process. The following information has been provided by USA Company:
The beginning units still in process are 30% complete with respect to direct materials and 40% complete with respect to conversion costs and had $22,550 of materials costs and $108,725 of conversion costs. The ending units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs.
- Assuming the weighted-average method was used, what were the equivalent units of production for direct materials?

Question

The USA Company manufactures flags in a single process. The following information has been provided by USA Company:
 The beginning units still in process are 30% complete with respect to direct materials and 40% complete with respect to conversion costs and had $22,550 of materials costs and $108,725 of conversion costs. The ending units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs.
- Assuming the weighted-average method was used, what were the equivalent units of production for direct materials?

Quizplus · Accepted Answer

The weighted-average method combines units and costs from the current period with units and costs from the previous period, averaging them together. Without specific data on beginning inventory, units started and completed, and ending inventory, it's impossible to calculate or validate the equivalent units of production for direct materials. However, assuming choice A is correct, it would mean that, based on the provided information and the weighted-average method, the equivalent units of production for direct materials are 19,700 units.

The USA Company Manufactures Flags in a Single Process