Dreamtime Manufacturing uses the weighted-average method of computing equivalent units of production. For beginning work in process there were 8000 units 20% complete as to materials and conversion costs. For ending work in process there were 10000 units 35% complete as to materials and conversion costs. 14 000 units were completed during the year. Determine the equivalent units of production.

Question

Quizplus · Accepted Answer

To calculate equivalent units of production, we need to add the units completed to the equivalent units of the beginning work in process and the equivalent units of ending work in process.

Equivalent units of beginning work in process:
8000 units x 20% = 1600 equivalent units

Equivalent units of ending work in process:
10000 units x 35% = 3500 equivalent units

Equivalent units of production:
1600 + 14000 + 3500 = 17,500 equivalent units

Dreamtime Manufacturing Uses the Weighted-Average Method of Computing Equivalent Units