Grant Corporation The following information is available for Grant Corporation for the current month:

Normal spoilage (discrete) 1,100 units

Abnormal spoilage 900 units

Ending WIP (70% complete) 13,000 units

Transferred out 72,500 units

Beginning Work in Process Costs:

Material $10,400

Conversion 13,800

Current Costs:

Material $120,000

Conversion 350,000

All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation.What are equivalent units of production for material using weighted average?

Question

Grant Corporation The following information is available for Grant Corporation for the current month:

Normal spoilage (discrete)		1,100 units
Abnormal spoilage		900 units
Ending WIP	(70% complete)	13,000 units
Transferred out		72,500 units
Beginning Work in Process Costs:
	Material	$10,400
	Conversion	13,800
Current Costs:
	Material	$120,000
	Conversion	350,000

All materials are added at the start of production and the inspection point is at the end of the process. Refer to Grant Corporation.What are equivalent units of production for material using weighted average?

Quizplus · Accepted Answer

Equivalent units of production for materials using the weighted average method are calculated by adding the units transferred out to the units of ending work in process inventory, since all materials are added at the start of production. Here, the transferred out units are 72,500 and the ending work in process inventory is 13,000 units (which are 100% complete for materials as materials are added at the start). Therefore, the equivalent units for materials are 72,500 + 13,000 = 85,500. However, considering the presence of spoilage, normal spoilage is typically considered part of the production process and thus included in the calculation of equivalent units. Since the question specifically asks for the equivalent units for material and given that all materials are added at the beginning, the spoilage units would not alter the calculation for materials, leading to a reconsideration of the calculation. The correct calculation should focus solely on the units that are part of the production flow for materials, which are fully added at the beginning. Thus, the correct answer reflects the total units accounted for in the production process without additional adjustments for spoilage, as spoilage does not affect the material calculation when materials are added at the start. This was an oversight in the explanation, and the correct approach is to directly calculate equivalent units for materials based on units transferred out and ending WIP, without adjusting for spoilage, leading to the initial calculation provided.

Grant Corporation the Following Information Is Available for Grant Corporation for the for the Current