Question

A production department's output for the most recent month consisted of 9,800 units completed and transferred to the next stage of production and 6,800 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% 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.

A. 10,000 units.B. 10,300 units.C. 15,000 units.D. 15,300 units.E. 10,700 units.

Answer 1

Answer: 13,880 units

Step-by-step explanation:

Units completed and transferred = 9,800 units

Complete = 100%

Equivalent units = Units completed and transferred × 100%

= 9,800 units × 100%

= 9,800 units

Ending Work in Process inventory = 6,800 units

Complete = 60%

Equivalent units = Physical units × 60%

= 6,800 units × 60%

= 4,080 units

Therefore,

Total equivalent units = 9,800 units + 4,080 units

= 13,880 units