Question

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Units of Product Percent of Conversion Added Beginning Work in Process 287,000 60 % Units started 582,000 100 % Units completed 655,600 100 % Ending Work in Process 213,400 40 %

Answer 1

740,960 equivalent units

Step-by-step explanation:

equivalent units of production = units completed and transferred out + equivalent units in ending work in process

• units completed and transferred out = 655,600
• equivalent units in ending work in process = (213,400 units x 40% completion rate = 85,360 equivalent units

equivalent units of production = 655,600 units + 85,360 equivalent units = 740,960 equivalent units

Equivalent units shows the number of partially completely units as fully completed units.