Question

Oasis Company adds all materials at the beginning of its manufacturing process. Production information for selected months of the year follows: Required: 1. Reconcile the number of physical units worked on during the period. Ending Beginning Work in Process Conversion Complete Units (percent) 3,000 8,400 Units Started Month February Units Transferred Out 38,000 Work in Process Conversion Complete Units (percent) 13,000 8,000 4,600 70 June 75 September December 46,600 52,800 44,000 5,800 30 50,000 42,800 2. Calculate the number of equivalent units for both materials and conversion for each month using the weighted average method. Equivalent Units Materials Conversion Month February June September December

Answer 1

Question 1.

To reconcile the number of physical units worked on, we need to use the below logic:

Opening units + Units Started = Units transferred + Closing units

For February,

3,000 + Units started = 38,000 + 13,000

Units started = 48,000

For June,

8,400 + 46,600 = Units transferred + 8,000

Units transferred = 47,000

For September,

Opening units + 52,800 = 50,000 + 4,600

Opening units = 1,800

For December

5,800 + 44,000 = 42,800 + Closing units

Closing units = 7,000

Question 2.

In weighted-average method, it is considered as units transferred during the period are completed 100% during the current period and for closing units we have to use the percentage of completion for calculation of equivalent units.

It is mentioned that the all the materials are introduced at the beginning of the process, so the percentage of completion for materials will be 100% in units transferred as well as closing WIP.

February Units % Units completed and transferred | 38000) Closing WIP 13000 Total equivalent units Materials Equivalent units % 100% 38000100% 100% 13000l 30% 51000 Conversion Equivalent units 38000 3900 41900 June Units % Units completed and transferred Closing WIP Total equivalent units 47000) 8000l Materials Equivalent units % Fauivalent 100% 47000 100% 100% 8000 45% 55000 Conversion Equivalent units 47000 3600 50600 September Units % Units completed and transferred | Closing WIP Total equivalent units 50000 4600 Materials Equivalent units % 100% 50000 100% 100% 4600 60% 546001 Conversion Equivalent units 50000 2760 52760 December Units % Units completed and transferred | 42800| Closing WIP 7000) Total equivalent units Materials Conversion Equivalent units % Equivalent units 100% 42800 100% 42800 100% 7000 70% 4900 49800 47700