Question

Required information The following information applies to the questions displayed below.) A production department in a process manufacturing system completed its work on 96,000 units of product and transferred them to the next department during a recent period. Of these units, 28,800 were in process at the beginning of the period. The other 67,200 units were started and completed during the period. At period end, 16,800 units were in process Prepare the production department's equivalent units of production for direct materials under each of three separate assumptions using the weighted-average method for process costing

Answer 1

Solution

Production department equivalent units of production to direct materials under the three given assumptions:

All direct materials are added to products when processing begins:
	Units	% Materials	EUP - Materials
Goods completed	96,000	100%	96,000
Ending work in process	16,800	100%	16,800
Total EUP	1,12,800		1,12,800

Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs
	Units	% Materials	EUP - Materials
Goods completed	96,000	100%	96,000
Ending work in process	16,800	75%	12,600
Total EUP	1,12,800		1,08,600

Beginning inventory is 70% complete as to materials and 30% complete as to conversion costs. Ending inventory is 20% complete as to materials and 70% as to conversion costs
	Units	% Materials	EUP - Materials
Goods completed	96,000	100%	96,000
Ending work in process	16,800	20%	3,360
Total EUP	1,12,800		99,360