Question

Medina Corp. had the following information available for the year:

Beginning inventory of goods in process (40% complete, $3,100)- 400 units
Ending inventory of goods in process (80% complete)- 800 units
Total units started during the year- 11,200 units

If the weighted-average inventory method were used, the equivalent units for the year would be:

Answer 1

The equivalent units for the year using the weighted-average inventory method is 11,000 units.

Step-by-step explanation:

The weighted-average inventory method is used to determine the equivalent units of production for a given period. It takes into account the units started, as well as the units in the beginning and ending inventories, and calculates the equivalent units based on the percentage of completion.

In this case, the equivalent units for the year can be calculated as follows:

• Equivalent units for beginning inventory = 400 units * 40% = 160 units
• Equivalent units for units started = 11,200 units
• Equivalent units for ending inventory = 800 units * 80% = 640 units
• Total equivalent units for the year = Equivalent units for beginning inventory + Equivalent units for units started + Equivalent units for ending inventory = 160 units + 11,200 units + 640 units = 11,000 units