Question

Required information (The following information applies to the questions displayed below.) The production department in a process manufacturing system completed 80,000 units of product and transferred them to finished goods during a recent period. Of these units, 32,000 were in process at the beginning of the period. The other 48,000 units were started and completed during the period. At period-end, 17,500 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 70% complete as to materials and conversion costs. EUP Units % Materials Materials Total EUP 3. Beginning inventory is 60% complete as to materials and 30% complete as to conversion costs. Ending Inventory is 20% complete as to materials and 70% complete as to conversion costs. EUP Units % Materials Materials Total EUP

Answer 1

EQUIVALENT UNIT OF PRODUCTION(weighted average method)

1)if all direct material are added to product when process beginning

Particular	units	%materials	EUP MATERIAL
UNIT completed and transferred to next department	80000	100%	80000
Ending inventory	17500	100%	17500
TOTAL EUP			97500

2)if beginning inventory is 30% completed as to materials and conversion cost, ending inventory is 70% complete as to material and conversion cost

Particular	unit's	material%	EUP MATERIAL
UNIT COMPLETED AND TRANSFERRED TO NEXT DEPARTMENT	80000	100%	80000
ENDING INVENTORY	17500	70%	12250
TOTAL EUP			92250

3) beginning INVENTORY 60% completed as to material and 30%complete as to conversion , ending inventory is 20 completed as to material and 70% completed as to conversion

Particular	unit's	material%	EUP
UNITS completed and transferred to next department	80000	100%	80000
Ending inventory	17500	20%	3500
TOTAL EUP			83500

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