Question

Your company uses process costing to account for costs of producing products.

You've been given the following information:

% Complete

Materials Beginning Units in Process 17,000 100%

Started during Month 73,000

Ending Units in Process 9,000 25%

Under the weighted average method, what are equivalent units for materials?

Answer 1

Answer)

Calculation of equivalent units for materials using weighted average method

Computation of Equivalent units of production	Number of units
Units completed and transferred out of department	81,000
Work in process at the end (9,000 units X 25%)	2,250
Total	83,250

Therefore equivalent units for materials using weighted average method are 83,250 units.

Working Note:

Calculation of units completed during the period

Units completed during the period = Units in beginning Inventory + units started during the period – units in ending inventory

                                                                 = 17,000 units + 73,000 – 9,000 units

                                                                = 81,000 units