A production department\'s output for the most recent month consisted of 8,100 u

Question

A production department's output for the most recent month consisted of 8,100 units completed and transferred to the next stage of production and 5,100 units in ending Work in Process inventory. The units in ending Work in Process inventory were 60% 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. 6,900 units. 9,960 units. 13,200 units. 5,040 units. 11,160 units.

Explanation / Answer

E. 11,160 units

Equivalent units of production = 8,100 + (5,100 x 60% ) = 11,160 units

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