Figure 6-22 The following information is available for Department A for the month of January:

Materials are added at the beginning of the process.Inspection takes place at the 50 percent point in the conversion process to determine spoiled units.Round unit costs to two decimal places.The company uses the weighted average cost flow assumption.
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Refer to Figure 6-22.Department A's equivalent units of production for materials using the weighted average method is

Question

Figure 6-22 The following information is available for Department A for the month of January:

Materials are added at the beginning of the process.Inspection takes place at the 50 percent point in the conversion process to determine spoiled units.Round unit costs to two decimal places.The company uses the weighted average cost flow assumption.
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Refer to Figure 6-22.Department A's equivalent units of production for materials using the weighted average method is

Quizplus · Accepted Answer

To calculate the equivalent units of production for materials using the weighted average method, we need to add the units completed during the month to the equivalent units in ending work in process inventory.

Units completed during the month = 40,000
Equivalent units of material in ending work in process inventory = 10,000 x 50% = 5,000

Therefore, total equivalent units of production for materials = 40,000 + 5,000 = 45,000

However, since the company uses the weighted average cost flow assumption, we also need to consider the units in beginning work in process inventory.

Equivalent units of material in beginning work in process inventory = 10,000 x 100% = 10,000

Weighted average equivalent units of production for materials = (10,000 units x $1.40 per unit) + (35,000 units x $1.50 per unit) = $58,500

Therefore, the answer is C) 50,000, which is the closest rounded equivalent units of production for materials under the weighted average cost flow assumption.

Figure 6-22 the Following Information Is Available for Department a for the Month