Question

WA EUP
In manufacturing its products, Trevano Corp. adds all direct material at the beginning of the production process. The company’s direct labor and overhead are considered to be continuously at the same degree of completion. September production information is as follows:

In manufacturing its products, Trevano Corp. adds all direct material at the beginning of the production process. The company’s direct labor and overhead are considered to be continuously at the same degree of completion. September production information is as follows: Beginning WIP Inventory 10,000 pounds Started during September 25,000 pounds Completed during September 32,000 pounds As of September 1, the beginning WIP Inventory was 30 percent complete as to labor and overhead. On September 30, the ending WIP Inventory was 80 percent complete as to conversion. a. Determine the total number of pounds to account for if Trevano uses the weighted average process costing method. Answer pounds b. Determine the equivalent units of production for direct material. Answer pounds c. Determine the equivalent units of production for direct labor and overhead. Answer pounds

Answer 1

Answer 2

Total number of pounds to account for= 35000 units.

A	Beginning WIP	10,000
B	Introduced	25,000
C=A+B	TOTAL units accounted for	35,000

.

b. Determine the equivalent units of production for direct material. =35,000 pounds
c. Determine the equivalent units of production for direct labor and overhead. = 34,400 pounds

Working

Reconciliation of Units
A	Beginning WIP	10,000
B	Introduced	25,000
C=A+B	TOTAL	35,000
D	Transferred out	32,000
E=C-D	Ending WIP	3,000

.

Statement of Equivalent Units(Weighted average)
			Material	Labor and overhead
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	32,000			100%	32,000	100%	32,000
Ending WIP	3,000			100%	3,000	80%	2,400
Total	35,000			Total	35,000	Total	34,400