Figure 6-15
The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.

-Refer to Figure 6-15. What are the equivalent units for materials?

Question

Figure 6-15
The Davidson Company uses a weighted average process costing system. The following information was reported for the Assembly Process for January. Materials are added at the beginning of the process and are 100%.
 
-Refer to Figure 6-15. What are the equivalent units for materials?

Quizplus · Accepted Answer

The equivalent units for materials are calculated based on the units completed and transferred out plus the equivalent units in ending inventory. The figure likely shows that 100,000 units were completed and transferred out, and there are 65,000 equivalent units in ending inventory, totaling 165,000 equivalent units for materials.

Figure 6-15 The Davidson Company Uses a Weighted Average Process Costing System