Figure 6-7.Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March. The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs.Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.Costs incurred during March are: materials used, $588,000; conversion cost $624,000.
-Refer to Figure 6-7. Using the weighted average method the total equivalent units of production for direct materials is
A) 120,000.
B) 118,600.
C) 116,000.
D) 105,000.

Question

Figure 6-7.Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March.  The beginning inventory was 70% complete for materials and 30% complete for conversion costs. The ending inventory was 905 complete for materials and 50% complete for conversion costs.Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.Costs incurred during March are: materials used, $588,000; conversion cost $624,000. 
-Refer to Figure 6-7. Using the weighted average method the total equivalent units of production for direct materials is
A) 120,000. 
B) 118,600. 
C) 116,000. 
D) 105,000.

Quizplus · Accepted Answer

The total equivalent units of production for direct materials using the weighted average method is calculated by adding the units completed and transferred out to the equivalent units in ending work in process, considering the percentage completion for direct materials. Without the specific details from Figure 6-7, the correct answer is based on the assumption that option B (118,600) is the calculated total equivalent units for direct materials.