Figure 6-13
Wonder Paints Corporation's Mixing Department began August 2016 with 10,000 gallons of product (40 percent completed) in process. During August, Wonder Paints started 100,000 gallons of new product, of which 15,000 gallons remained in ending inventory (70 percent completed).
-Refer to Figure 6-13. If materials were added when the units were 80 percent complete, how many equivalent units of production for materials would there be for Wonder Paints using the weighted average costing method?

Question

Quizplus · Accepted Answer

Under the weighted average method, equivalent units for materials are calculated based on units completed and transferred out plus equivalent units in ending inventory. Since materials are added at 80% completion, only the units completed and transferred out (95,000 units) are considered for materials. Ending inventory is not considered because it hasn't reached the point where materials are added.

Figure 6-13 Wonder Paints Corporation's Mixing Department Began August 2016 with 10,000