A production department\'s output for the most recent month consisted of 13,500

Question

A production department's output for the most recent month consisted of 13,500 units completed and transferred to the next stage of production and 13,500 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. There were 1,700 units in beginning Work 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

Answer-c. 21,600 Units Unit Reconciliation Units to account for: Beginning WIP              1,700 Started into Production (115 - 3)            25,300 Total units to account for            27,000 Total units accounted for Completed during the period            13,500 Ending WIP            13,500 Total units accounted for            27,000 Equivalent Units of Production (EUP) - Weighted Average Method Units % Material EUP-Materials % Conversion EUP-Conversion Completed during the period            13,500 100%      13,500.00 100%      13,500.00 Ending WIP            13,500 60%        8,100.00 60%        8,100.00 Equivalent Units of Production (EUP)      21,600.00      21,600.00

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