O\'Malley Corp. uses a weighted average process costing system. Material is adde
ID: 2664773 • Letter: O
Question
O'Malley Corp. uses a weighted average process costing system. Material is added at the beginning of the production process and overhead is applied on the basis of direct labor. O'Malley's records indicate that 70,000 units were in process at the beginning of May 2010; these units were 35 percent complete as to conversion. In May, the company started 445,300 and completed 427,500 units. May's ending inventory was 30 percent complete as to conversion.a. What are the equivalent units of production for direct material?
b. What are the equivalent units of production for conversion?
Explanation / Answer
opening work in progress 70000 units completed and transferred 427500 units units introduced (427500-70000) 357500 units units accounted for units transferred 427500 units at the ending 17800 Total units 445300 units Equivalent units Total Materials conversion units transferred 427500 427500 427500 work in progress ending 17800 17800 5340 Total units 445300 445300 432840
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