A company uses a process costing system. its weaving department completed and transferred out 120,000 units during the current period. the ending inventory in the weaving department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs. determine the equivalent units of production for the weaving department for direct materials and conversion costs assuming the weighted average method.

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Business

Sariah Dixon

3 May, 19:46

A company uses a process costing system. its weaving department completed and transferred out 120,000 units during the current period. the ending inventory in the weaving department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs. determine the equivalent units of production for the weaving department for direct materials and conversion costs assuming the weighted average method.

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Miya Norton · Answer 1

120, 000 units completed

60 % is complete

This translates to 60*40,000/40

=60, 000

The equivalent units, then, are:

120,000 - (60,000+40,000)

=20, 000 units