Takon manufactures specialized plastic boxes in two processes: Moulding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:
$\begin{array}{lcccc}
&&&\text { Costs }\
&\underline{\text { Units }} &\underline{\text { Trans.-in }} &\underline{\text { Materials }} &\underline{\text { Conv. }}\
\text { Work in process, October } 1 & 30 & \$ 1,590 & \$ 0 & \$ 513 \
\text { Transferred in during October } & ? & & & \
\text { Completed during October } & 105 & & & \
\text { Work in process, October } 31 & 15 & & \
\text { Costs added during October } & & \$ 4,410 & \$ 1,050 &\$ 1,767
\end{array}$

The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
-Refer to the figure.What would be Takon's equivalent units for transferred-in units using weighted average?

Question

Takon manufactures specialized plastic boxes in two processes: Moulding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given:
$\begin{array}{lcccc}
&&&\text { Costs }\
&\underline{\text { Units }} &\underline{\text { Trans.-in }} &\underline{\text { Materials }} &\underline{\text { Conv. }}\
\text { Work in process, October } 1 & 30 & \$ 1,590 & \$ 0 & \$ 513 \
\text { Transferred in during October } & ? & & & \
\text { Completed during October } & 105 & & & \
\text { Work in process, October } 31 & 15 & &  \
\text { Costs added during October } & & \$ 4,410 & \$ 1,050 &\$ 1,767
\end{array}$

The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed.
-Refer to the figure.What would be Takon's equivalent units for transferred-in units using weighted average?

Quizplus · Accepted Answer

Equivalent units for transferred-in costs under the weighted average method are calculated by adding the units completed during the period to the equivalent units in ending work in process inventory. The units completed are 105, and there are no equivalent units for transferred-in costs in the ending work in process because materials are added at the end of the process, and the question is about transferred-in units, not materials or conversion costs. Therefore, the equivalent units for transferred-in costs are the same as the units completed, which is 105. However, the beginning work in process units (30 units) are also considered in the weighted average method, making the total 105 (completed) + 15 (ending work in process, but not relevant for transferred-in since it's fully transferred upon entry to the process) + 30 (beginning work in process) = 135. The error in calculation here needs correction: the correct approach is to add the completed units (105) to the units still in process (which are not relevant for transferred-in since they are fully transferred upon entry). The correct calculation should focus on the total units accounted for, which are the units completed plus any additional units considered in the process. However, the provided options do not align with this corrected explanation, indicating a misunderstanding in the explanation process. The correct calculation for equivalent units for transferred-in costs should consider both the units fully processed and any partial units, adjusted by their completion percentage, but since transferred-in units are considered 100% complete upon entry to the Packaging Department, the focus should be on the total units handled. Without specific numbers for beginning inventory and units started and completed, the calculation directly from the provided options and data is not straightforward. The initial explanation mistakenly mixed concepts of transferred-in units with the completion rates of other processes (materials or conversion), which do not apply to the transferred-in units calculation. The correct answer should reflect the total units that were transferred in and processed during the period, but due to a misunderstanding, the provided response and options do not accurately capture the necessary calculation steps.

Takon Manufactures Specialized Plastic Boxes in Two Processes: Moulding and Packaging