A production department's output for the most recent month consisted of 8,900 units completed and transferred to the next stage of production and 5,900 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

Question

Business

Pockets

23 January, 12:28

A production department's output for the most recent month consisted of 8,900 units completed and transferred to the next stage of production and 5,900 units in ending Work in Process inventory. The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method.

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Landyn Kline · Answer 1

The equivalent units of production for the month is 11,850 units

Explanation:

The computation of the equivalent unit is shown below:

= (Completed and transferred units * completed percentage) + (ending work in progress units * completed percentage)

= (8,900 units * 100%) + (5,900 units * 50%)

= 8,900 units + 2,950 units

= 11,850 units

For computing the equivalent units, we have to consider both the units which are mentioned in the question.