Question

! Required information (The following information applies to the questions displayed below.) A production department in a process manufacturing system completed its work on 88,000 units of product and transferred them to the next department during a recent period. Of these units, 26,400 were in process at the beginning of the period. The other 61,600 units were started and completed during the period. At period-end, 16,400 units were in process. ok nt encos Prepare the production department's equivalent units of production for 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 % Materials EUP-Materials Units Total 2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 70% complete as to materials and conversion costs.

Answer 1

Calculations are shown below:

Equivalent Units of Production (EUP)—Weighted Average Method 1. All direct materials are added to products when processing begins. Units % Materials EUP-Materials Goods completed 88,000) 100% 88,000 Ending work in process 16,400 100% 16,400 Total EUP 104400 104400 2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 70% complete as to materials and conversion costs. Units % Materials EUP-Materials Goods completed 88,000 100% 88,000 Ending work in process 16,400 70% 11,480 Total EUP 104,400 99,480 3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs. Units % Materials EUP-Materials Goods completed 88,000 100% 88,000 Ending work in process 16,400 30% 4,920 Total EUP 104,4001 92,920