Question

During April, the first production department of a process manufacturing system completed its work on 380,000 units of a product and transferred them to the next department. Of these transferred units, 76,000 were in process in the production department at the beginning of April and 304,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 98,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion. Compute the number of equivalent units with respect to both materials used and conversion used in the first production department for April using the weighted average method.

Answer 1

Calculation of no of units transferred to finished goods
Units in beginning inventory	76000
Units started and completed	304000
Units transferred to finished goods	380000
Calculation of equivalent unit in both material and conversion used is shown below
	Units	% materials	EUP-Materials	% conversion	EUP-conversion
Units completed and transferred	380,000	100%	380,000	100%	380,000
Ending work in process units	98,000	85%	83,300	35%	34,300
Equivalent unit of production	478,000		463,300		414,300