Question

During November, the production department of a process operations system completed and transferred to finished goods 31,000 units that were in process at the beginning of November and 130,000 units that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of November, 27,000 additional units were in process in the production department and were 100% complete with respect to materials and 70% complete with respect to conversion. Compute the number of equivalent units with respect to materials for November using the weighted-average method.

Answer 1

188,000 units

Step-by-step explanation:

For computing the equivalent units for material cost, first we have to compute the transferred units which is shown below:

= Beginning finished good inventory units + units started and completed units

= 31,000 units + 130,000 units

= 161,000 units

Now the equivalent units for material costs equal to

= Transferred units × percentage of completion + additional units in process × percentage of completion

= 161,000 units × 100% + 27,000 units ×60%

= 161,000 units + 27,000 units

= 188,000 units