Sussex Corporation's production cycle starts in the Mixing Department.The following information is available for April: Materials are added at the beginning of the process in the Mixing Department.What are the equivalent units of production for the month of April,assuming Sussex uses the weighted-average method?

Question

Sussex Corporation's production cycle starts in the Mixing Department.The following information is available for April:  Materials are added at the beginning of the process in the Mixing Department.What are the equivalent units of production for the month of April,assuming Sussex uses the weighted-average method?

Quizplus · Accepted Answer

Since materials are added at the beginning of the process, there will be no units that are 100% completed in the Mixing Department at the end of the month. Therefore, the equivalent units of production will only include units that are partially completed in the Mixing Department. The weighted-average method takes into account the units in progress at the beginning of the month, as well as the units started and completed during the month. Without specific information on production volumes and completion rates, it is impossible to calculate the equivalent units of production with accuracy. Therefore, the only reasonable choice is C, which is to say that there is not enough information to calculate the equivalent units of production.

Sussex Corporation's Production Cycle Starts in the Mixing Department