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7 March, 13:39

Required: a. Adams Company's production cycle starts in Department A. The following information is available for July: Work i process, July 1 (60% complete) Started in July Work in process, July 31 (30% complete) Units 73,000 350,000 42,000 Materials are added at the beginning of the process in Department A. Using the weighted-average method, what are the equivalent units of production for materials and conversion costs for the month of July, respectively?

O 423.000: 393.600

O 381,000, 350,000

O 350000, 362.600

O 423.000, 381000

O None of the above

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  1. 7 March, 16:47
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    For materials:

    Units transferred out 381,000*

    Add:

    Materials 42,000*100% = 42,000

    Equivalent units 423,000

    *Units transferred out = Units stated+Beg inv-End inv = 350,000+73,000-42,000 = 381,000

    For conversion costs:

    Units transferred out 381,000*

    Add:

    Conversion cost 42,000*30% = 12,600

    Equivalent units 393,600

    Correct answer is 423,000; 393,600
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