During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 25,000 were in process at the beginning of March and 110,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor. At the end of March, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. Compute the number of equivalent units with respect to both materials and direct labor respectively for March using the weighted-average method.
A) 165,000; 165,000.
B) 135,000; 119,000.
C) 140,000; 130,250.
D) 165,000; 144,000.
E) 144,000; 144,000.

Question

Quizplus · Accepted Answer

For materials: The 25,000 units from the beginning inventory were already 100% complete, plus the 110,000 units started and completed in March, plus the 30,000 units in process at the end of March which were also 100% complete with respect to materials, totaling 165,000 equivalent units for materials. For labor: The beginning inventory units do not count towards March's labor since they were already 55% complete before March. Thus, only the labor added in March is considered. The 110,000 units started and completed in March are fully counted. The 30,000 units in process at the end of March are 30% complete, so they contribute 30% of 30,000 units = 9,000 units towards the labor equivalent units. Therefore, the total equivalent units for labor are 110,000 (completed in March) + 9,000 (30% of the units in process at the end of March) = 119,000 equivalent units for labor.

During March, the Production Department of a Process Manufacturing System