PCS Corporation manufactures clocks using a two-department process. Direct materials are added in both the Assembly and Finishing Departments. Conversion costs are applied uniformly throughout the process. The weighted-average method of process costing is used. Data for the Finishing Department for the month of April follow:

- What were the equivalent units of production for direct materials?

Question

PCS Corporation manufactures clocks using a two-department process. Direct materials are added in both the Assembly and Finishing Departments. Conversion costs are applied uniformly throughout the process. The weighted-average method of process costing is used. Data for the Finishing Department for the month of April follow:

- What were the equivalent units of production for direct materials?

Quizplus · Accepted Answer

The equivalent units of production for direct materials are calculated based on the units completed and transferred out plus the equivalent units in the ending work in process inventory. The correct answer, 59,000, suggests it was calculated by adding the full units of completed goods to the proportion of unfinished goods that were accounted for as equivalent units, specifically for direct materials.

PCS Corporation Manufactures Clocks Using a Two-Department Process