Question

The production department in a process manufacturing system completed 234,000 units of product and transferred them to finished goods during a recent period. Of these units, 74,000 were in process at the beginning of the period. The other 160,000 units were started and completed during the period. At period end, 37,000 units were in process. Compute 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: 1. All direct materials are added to products when processing begins. Total EUP 2. Direct materials are added to products evenly throughout the process. Beginning goods in process inventory was 40% complete, and ending goods in process inventory was 75% complete. Total EUP 3. One-half of direct materials is added to products when the process begins and the other half is added when the process is 75% complete as to direct labor. Beginning goods in process inventory is 40% complete as to direct labor, and ending goods in process inventory is 60% complete as to direct labor. Total EUP

Answer 1

Part 1

Total EUP

271000

	units	% materials	EUP-materials
Goods completed	234000	100%	234000
Ending goods in process	37000	100%	37000
Total EUP	271000		271000

Part 2

Total EUP

261750

	units	% materials	EUP-materials
Goods completed	234000	100%	234000
Ending goods in process	37000	75%	27750
Total EUP	271000		261750

Part 3

Total EUP

252500

	units	% materials	EUP-materials
Goods completed	234000	100%	234000
Ending goods in process	37000	50%	18500
Total EUP	271000		252500