Using the weighted-average method, the equivalent units for materials for March would be:

A) 66,000
B) 68,000
C) 70,250
D) 71,000

Question

Using the weighted-average method, the equivalent units for materials for March would be:A) 66,000B) 68,000C) 70,250D) 71,000

Dustin Blair · Accepted Answer

Final Answer : C, Explanation :  To calculate the equivalent units of materials using the weighted-average method, we need to multiply the number of partially completed units by the percentage of completion of materials.For March:Equivalent units = (Units started and completed in March) + (Units in ending Work in Process inventory * percentage complete)Units started and completed in March = 60,000Units in ending Work in Process inventory = 10,000Percentage of completion of materials = (Cost of materials added to Work in Process during March / Cost of equivalent units completed during March)Cost of materials added to Work in Process during March = $200,000Cost of equivalent units completed during March = 60,000 units * $3 per unit = $180,000Percentage of completion of materials = ($200,000 / $180,000) = 1.11Equivalent units = (60,000) + (10,000 * 1.11) = 70,250Therefore, the best choice is C. Units completed and transferred out = Units in beginning work in process inventory + Units started into production or transferred in - Units in ending work in process inventoryUnits completed and transferred out = 7,000 + 66,000 - 5,000 = 68,000Weighted-average method equivalent units of production

Using the weighted-average method, the equivalent units for materials for March would be:

A) 66,000
B) 68,000
C) 70,250
D) 71,000

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