Beginning inventory for the month contained 4,000 units that were 65% complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 6,000 units that were 40% complete with respect to materials. What would be the weighted average equivalent units of production for materials for the month?
A) 62,400
B) 60,000
C) 57,600
D) 56,000

Question

Quizplus · Accepted Answer

The weighted average method calculates equivalent units by adding units completed and transferred out to the equivalent units in ending inventory. Equivalent units for ending inventory = 6,000 units * 40% = 2,400. Total equivalent units = 60,000 + 2,400 = 62,400.

Beginning Inventory for the Month Contained 4,000 Units That Were