A production department\'s output for the most recent month consisted of 19,500

Question

A production department's output for the most recent month consisted of 19,500 units completed and transferred to the next stage of production and 19,500 units in ending goods in process inventory. The units in ending goods in process inventory were 60% complete with respect to both direct materials and conversion costs. There were 2,900 units in beginning goods in process inventory, and they were 80% complete with respect to both direct materials and conversion costs. Calculate the equivalent units of production for the month, assuming the company uses the weighted average method

Explanation / Answer

equivalent units of production = 20%* 2,900 + 19,500 +19,500*60% = 31,780 units

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