The ALG Manufacturing Company has gathered the following information for the month of September: • 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials,1/3 complete with respect to the conversion costs).• 60,000 units were started into production.• 50,000 units were completed and transferred to the next department.• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.What are the equivalent units of production (EUP)for materials in the month of September assuming ALG uses weighted-average process costing?

Question

Quizplus · Accepted Answer

To calculate EUP for materials, we need to consider both the beginning Work-in-Process Inventory and the units started into production during the month. 
Equivalent units of production (EUP) for materials = (Units started + Beginning WIP inventory) × (100% - Degree of completion of beginning WIP inventory) 
= (60,000 + 6,000) × (100% - 75%) 
= 66,000 units

The ALG Manufacturing Company Has Gathered the Following Information for the Month