Beginning inventory for the month contained 12,000 units that were 60% complete with respect to materials. During the month, 80,000 units were completed and transferred out. Ending inventory contained 6,000 units, 30% complete with respect to materials. What would be the weighted average equivalent units of production for materials for the month?
A) 12,000
B) 80,000
C) 81,800
D) 92,000

Question

Quizplus · Accepted Answer

To calculate the weighted average equivalent units of production for materials, we need to calculate the equivalent units of production for the beginning inventory, units completed and transferred out, and ending inventory.

Equivalent units of production for beginning inventory = 12,000 x 60% = 7,200

Equivalent units of production for units completed and transferred out = 80,000

Equivalent units of production for ending inventory = 6,000 x 30% = 1,800

Total equivalent units of production for materials = 7,200 + 80,000 + 1,800 = 81,800. Therefore, the best choice is C.

Beginning Inventory for the Month Contained 12,000 Units That Were