A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 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

Tiger

14 March, 10:52

A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 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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Micah Ellis · Answer 1

Equivalent units of production = 10,500

Explanation:

Given:

Complete production = 8,000 units

Ending work in process = 5,000 units

Complete ending work in process = 50% = 50 / 100 = 0.50

Equivalent units of production = ?

Computation of equivalent units of production:

Equivalent units of production = Complete production + [Ending work in process * Complete ending work in process]

Equivalent units of production = 8,000 + [5,000 * 0.50]

Equivalent units of production = 8,000 + 2,500

Equivalent units of production = 10,500