Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

The production department in a process manufacturing system completed 84,000 uni

ID: 2556253 • Letter: T

Question


The production department in a process manufacturing system completed 84,000 units of product and transferred them to finished goods during a recent period. Of these units, 33,600 were in process at the beginning of the period. The other 50,400 units were started and completed during the period. At period-end, 17,700 units were in process.

Prepare the department’s equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted-average method for process costing.

Equivalent Units of Production (EUP)—Weighted Average Method

1. All direct materials are added to products when processing begins.

Units

% Materials

EUP—Materials

Total EUP

2. Beginning inventory is 30% complete as to materials and conversion costs. Ending inventory is 80% complete as to materials and conversion costs.

Units

% Materials

EUP—Materials

Total EUP

3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs.

Units

% Materials

EUP—Materials

Total EUP

Equivalent Units of Production (EUP)—Weighted Average Method

1. All direct materials are added to products when processing begins.

Units

% Materials

EUP—Materials

Total EUP

2. Beginning inventory is 30% complete as to materials and conversion costs. Ending inventory is 80% complete as to materials and conversion costs.

Units

% Materials

EUP—Materials

Total EUP

3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs.

Units

% Materials

EUP—Materials

Total EUP

strashed goods danga recent pred or them ures, 23500 weren process Pt beginnig of the p. nathodtor pcn.coting

Explanation / Answer

EUP 1) units % materials materials completed & transferred 84,000 100% 84,000 ending work in process 17,700 100% 17,700 total EUP 101,700 2) EUP units % materials materials completed & transferred 84,000 100% 84,000 ending work in process 17,700 80% 14,160 total EUP 98,160 3) EUP units % materials materials completed & transferred 84,000 100% 84,000 ending work in process 17,700 30% 5,310 total EUP 89,310