Beginning inventory for the month contained 3,000 units that were 35 percent complete with respect to materials; 45,000 units were completed and transferred out during the month; 4,500 units were in ending inventory,10 percent complete with respect to materials.What would be the weighted average equivalent units of production for materials for the month?

Question

Quizplus · Accepted Answer

To find the weighted average equivalent units of production for materials, we need to consider the units that were partially completed at the beginning and end of the month in addition to the completed and transferred out units.

First, we need to calculate the equivalent units of production for materials for the units completed and transferred out during the month:

Equivalent units for completed and transferred out units = actual units completed x percentage completion
= 45,000 x 100% (they are fully complete)
= 45,000 units

Next, we need to calculate the equivalent units of production for materials for the beginning inventory:

Equivalent units for beginning inventory = actual units x percentage completion
= 3,000 x 35%
= 1,050 units

Finally, we need to calculate the equivalent units of production for materials for the ending inventory:

Equivalent units for ending inventory = actual units x percentage completion
= 4,500 x 10%
= 450 units

The total equivalent units of production for materials for the month is the sum of the equivalent units for the completed & transferred out units, beginning inventory, and ending inventory:

Total equivalent units of production = 45,000 + 1,050 + 450
= 45,450 units

Therefore, the best choice is B) 45,450 units.

Beginning Inventory for the Month Contained 3,000 Units That Were