Franklin Company manufactures a product that passes through two processes: Mixing and Moulding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows: $\begin{array}{llr}
\text { Work in process, October 1: } &\
\text { Units ( $ 35 \% $ complete)} &7,500\
\text { Direct materials} &\$36,000\
\text { Direct labour } &\$45,000\
\text {Overhead } &\$15,000\
\end{array}$
During October,37,500 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}
\text { Direct materials } & \$ 135,000 \
\text { Direct labour } & 180,000 \
\text { Overhead } & 45,000
\end{array}$ There were 3,750 units that were 80 percent complete remaining in Mixing at October 30.What are the equivalent units of production using the weighted average method?

Question

Franklin Company manufactures a product that passes through two processes: Mixing and Moulding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows: $\begin{array}{llr}
\text { Work in process, October 1:  } &\
 \text {  Units ( $ 35 \% $ complete)} &7,500\
 \text {  Direct materials} &\$36,000\
 \text { Direct labour } &\$45,000\
 \text {Overhead  } &\$15,000\
\end{array}$
 During October,37,500 units were completed and transferred to the Moulding Department.The following costs were incurred by the Mixing Department during October:
$\begin{array}{lr}
\text { Direct materials } & \$ 135,000 \
\text { Direct labour } & 180,000 \
\text { Overhead } & 45,000
\end{array}$ There were 3,750 units that were 80 percent complete remaining in Mixing at October 30.What are the equivalent units of production using the weighted average method?

Quizplus · Accepted Answer

The equivalent units of production using the weighted average method are calculated by adding the units completed and transferred out to the equivalent units in ending work in process. Here, 37,500 units were completed and transferred out. The ending work in process is 3,750 units at 80% completion, which equals 3,000 equivalent units (3,750 * 0.8). Therefore, the total equivalent units of production are 37,500 + 3,000 = 40,500 units.

Franklin Company Manufactures a Product That Passes Through Two Processes