Question

In the Sewing Department, additional direct materials are added to the product at the end of production. Without prejudice to your answer for questions 1 through 9, assume that 200,000 units were transferred from the Cutting Department and that the weighted-average method is used. Data for February follow: Work-in-process, January 31—70,000 units (30 percent complete as to conversion) Units completed during February—240,000 units Work-in-process, February 28—30,000 units (80 percent complete as to conversion) For the Sewing Department, the equivalent units of work done in February is Transferred In Direct Materials Conversion Costs a. 200,000 200,000 200,000 b. 200,000 170,000 194,000 c. 240,000 240,000 245,000 d. 270,000 240,000 264,000

Answer 1

Correct answer---------240,000 264,000.

240,000 for material and 264000 for conversion

Working

Reconciliation of Units
A	Opening WIP	70,000
B	Introduced	200,000
C=A+B	TOTAL	270,000
D	Transferred	240,000
E=C-D	Closing WIP	30,000

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred	240,000			100%	240,000.0	100%	240,000
Closing WIP	30,000			0%	-	80%	24,000
Total	270,000			Total	240,000.0	Total	264,000