Dreamtime Manufacturing uses the weighted-average method of computing equivalent units of production. For beginning work in process there were 6000 units 30% complete as to materials and conversion costs. For ending work in process there were 4000 units 60% complete as to materials and conversion costs. 16 000 units were completed during the year. Determine the equivalent units of production.

Question

Quizplus · Accepted Answer

Equivalent units of production for materials = Units completed + (Ending WIP units x % complete for materials) - (Beginning WIP units x % complete for materials) = 16,000 + (4,000 x 60%) - (6,000 x 30%) = 16,000 + 2,400 - 1,800 = 18,400
Equivalent units of production for conversion costs = Units completed + (Ending WIP units x % complete for conversion costs) - (Beginning WIP units x % complete for conversion costs) = 16,000 + (4,000 x 60%) - (6,000 x 30%) = 16,000 + 2,400 - 1,800 = 18,400
Therefore, the total equivalent units of production is 18,400.

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