Asked by
Fahina Fonua
on Oct 15, 2024Verified
During March,the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.
A) 165,000 materials; 165,000 conversion.
B) 135,000 materials; 119,000 conversion.
C) 140,000 materials; 130,250 conversion.
D) 165,000 materials; 144,000 conversion.
E) 144,000 materials; 144,000 conversion.
Weighted-Average Method
An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold.
Equivalent Units
A concept used in cost accounting to express the amount of work done on incomplete units in terms of fully completed units.
- Determine the equivalent production units for materials as well as for conversion costs.
- Apply FIFO and weighted-average methods in process costing.
Verified Answer
LT
Learning Objectives
- Determine the equivalent production units for materials as well as for conversion costs.
- Apply FIFO and weighted-average methods in process costing.
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