At the beginning of the month, the Forming Department of Martin Manufacturing had 14,000 units in inventory, 40% complete as to materials, and 20% complete as to conversion. During the month the department started 64,000 units and transferred 68,000 units to the next manufacturing department. At the end of the month, the department had 10,000 units in inventory, 85% complete as to materials, and 60% complete as to conversion. If Martin Manufacturing uses the weighted-average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.

total equivalent units using weighted average method:

materials = 76,500 units conversion = 74,000 units

Explanation:

beginning inventory 14,000 units

40% complete to materials = 5,600 equivalent units 20% complete to conversion = 2,800 equivalent units

during the month 64,000 were started

68,000 units were transferred out

ending inventory 10,000 units

85% complete to materials = 8,500 equivalent units 60% complete to conversion = 6,000 equivalent units

total equivalent units using weighted average method:

materials = units completed and transferred out + ending inventory = 68,000 + 8,500 = 76,500 units conversion = units completed and transferred out + ending inventory = 68,000 + 6,000 = 74,000 units