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16 March, 14:54

The Townson Manufacturing Company has gathered the following information for the month of September: 8,100 units in the beginning Work-in-Process Inventory (90% complete as to materials, 1/3 complete with respect to the conversion costs). 67,000 units were started into production. 57,000 units were completed and transferred to the next department. The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs. What are the equivalent units of production (EUPs) for materials in the month of September assuming Townson uses weighted-average process costing

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  1. 16 March, 17:18
    0
    Equivalent Units Production Cost = 63,787.5

    Explanation:

    To find out the Equivalent unit production first we have to calculate the ending inventory;

    To compute the ending inventory

    Transferred Units = Beginning Work in Process + Started Units - Ending Inventory

    Ending Inventory = Beginning Work in Process + Started Units - Transferred Units

    Ending Inventory = 8100 + 67000 - 57000

    Ending Inventory = 18,100

    To compute the Equivalent unit production;

    Equivalent Units Production Cost = Transferred Units + (3/8 * Ending Inventory)

    Equivalent Units Production Cost = 57,000 + (3/8 * 18,100)

    Equivalent Units Production Cost = 63,787.5
  2. 16 March, 17:52
    0
    The equivalent unit of production = 63,787.5 units

    Explanation:

    Given dа ta:

    Unit transferred out = 57,000 units

    Beginning work = 8,100 units

    units started = 67,000 units

    Units transferred out = beginning work + units started - Ending inventory

    57,000 = 8,100 + 67,000 - Ending inventory

    57,000 = 75100 - Ending inventory

    Ending inventory = 75100 - 57,000

    = 18,100

    Equivalent units of production for conversion cost = Units transferred out + (3/8 * ending inventory)

    = 57,000 + (3/8 * 18,100)

    = 57,000 + 6787.5

    = 63,787.5

    Therefore, the equivalent unit of production = 63,787.5 units
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