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)92,000
B)81,800
C)80,000
D)12,000

Question

Quizplus · Accepted Answer

The calculation for weighted average equivalent units of production for materials is as follows:

Beginning inventory: 12,000 units × 60% complete = 7,200 equivalent units
Units started and completed during the month: 80,000 units × 100% complete = 80,000 equivalent units
Ending inventory: 6,000 units × 30% complete = 1,800 equivalent units
Total equivalent units = 7,200 + 80,000 + 1,800 = 89,000
Therefore, the answer is B) 81,800, because it is the closest to 89,000.

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