Franklin Company manufactures a product that passes through two processes: Mixing and Molding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows: During October, 37,500 units were completed and transferred to the Molding Department.The following costs were incurred by the Mixing Department during October:
There were 3,750 units that were 80 percent complete remaining in mixing at October 30.The equivalent units of production using the weighted average method is

Question

Franklin Company manufactures a product that passes through two processes: Mixing and Molding.All manufacturing costs are added uniformly in the Mixing Department.Information for the Mixing Department for October follows:  During October, 37,500 units were completed and transferred to the Molding Department.The following costs were incurred by the Mixing Department during October:
 There were 3,750 units that were 80 percent complete remaining in mixing at October 30.The equivalent units of production using the weighted average method is

Quizplus · Accepted Answer

To calculate the equivalent units of production using the weighted average method, we need to consider the units completed and transferred out during the period (37,500), as well as the units in ending work in process (3,750 at 80% completion).

First, we need to calculate the equivalent units of production for materials and conversion costs:

Materials:
37,500 units completed and transferred out + (3,750 units x 80% completion) = 40,500 equivalent units of production for materials

Conversion:
37,500 units completed and transferred out + (3,750 units x 80% completion) + (3,750 units x 20% completion) = 43,125 equivalent units of production for conversion

Since all costs are added uniformly in the Mixing Department, we don't need to separate the costs into materials and conversion costs for this calculation.

Therefore, the equivalent units of production using the weighted average method is 40,500 units. The best choice is C.

Franklin Company Manufactures a Product That Passes Through Two Processes