During April, the production department of a process manufacturing system comple

Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 52,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to labor. At the end of April, 73,000 additional units were in process in the production department and were 90% complete with respect to materials and 30% complete with respect to labor.


REQUIRED:
1.Compute the number of units transferred to finished goods.
2.Compute the number of equivalent units with respect to both materials used and labor used in the production department for April using the weighted-average method.

Explanation / Answer

Step 1 - Summarize the flow of physical units, regardless of their stage of completion. Beginning Balance - 52,000 Transferred to FG - (292,000) Ending Balance - 73,000 Therefore UNITS ADDED to production was 313,000 BB + Units Added = 365,000 to be accounted for, and Units Transferred to FG + EB = 365,000 Step 2 - Compute equivalent units produced. Units transferred to FG - 292,000 (292,000 DM & 292,000 DL) Ending Balance - 73,000 (80% DM = 58,400) (30% DL = 21,900) Equivalent units of production = 350,400 DM & 313,900 DL Since Cost data was not given, weighted average cost cannot be determined

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