Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 47,000 were in process in the production department at the beginning of April and 250,000 were started and completed in April. April's beginning inventory units were 40% complete with respect to materials and 60% complete with respect to labor. At the end of April, 73,000 additional units were in process in the production department and were 90% complete with respect to materials and 50% complete with respect to labor. 1. Compute the number of units transferred to finished goods. Number of units 2. Compute the number of equivalent units with respect to both materials used and labor used in the production department for April using the weighted average method. Direct Materials Direct Labor Number of equivalent units

Answer 1

1) Number of units
Number of units transferred
From beginning in process	47,000
Started and completed	250,000
Total units transferred to finished goods	297,000
Number of units	297,000
2)
	Direct materials	Direct labor
Number of Equivalent unit	362,700	333,500
Working Notes:
	Direct materials	Direct labor
Units transferred to finished goods	297,000	297,000
Ending work in process
Direct materials (73,000 × 90%)	65,700
Direct labor (73,000 × 50%)	-	36,500
Number of equivalent units	362,700	333,500