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Q2 The Assembly Department uses a weighted-average process cost accounting syste

ID: 2341381 • Letter: Q

Question

Q2

The Assembly Department uses a weighted-average process cost accounting system. The department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. During July, $190,000 of materials costs and $135,500 in conversion costs were charged to the department. The beginning work in process inventory was $93,000 on July 1, comprised of $80,000 of materials costs and $13,000 of conversion costs.

Other data for the month of July are as follows:

What are the equivalent units of production for materials for July?

Beginning work in process inventory, 7/1    25,000 units (40% complete) Units completed and transferred out 90,000 units Ending work in process inventory, 7/31 30,000 units (30% complete)

Explanation / Answer

Units completed and transferred out 90000 Add: Ending work in process inventory, 7/31 30000 Equivalent units of production for materials for July 120000