The Martin Rubber Company produces tires. The following information is available for Martin:
Beginning work in process inventory: 2,000 tires, 100% complete for direct materials, 60% complete for conversion costs, cost of direct materials = $57,100, cost of direct labor and manufacturing overhead allocated = $19,020
Current period activity: 15,100 tires started into production, 12,600 tires completed, cost of direct materials added = $302,000, cost of direct labor and manufacturing overhead allocated = $232,980
Ending work in process inventory: 4,500 units, 100% complete for direct materials, 40% complete for conversion costs
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Assuming Martin uses the weighted-average method, what were the equivalent units of production for direct materials?

Question

Quizplus · Accepted Answer

Under the weighted-average method, equivalent units for direct materials are calculated by adding the units completed and transferred out (12,600) to the equivalent units in ending inventory (4,500), since all units are 100% complete for direct materials. Thus, 12,600 + 4,500 = 17,100 equivalent units.

The Martin Rubber Company Produces Tires