Question

Equivalent Units of Production: Weighted average method

The following information concerns production in the Finishing Department for May. The Finishing Department uses the Weighted average method.

ACCOUNT Work in Process—Finishing Department					ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
May	1	Bal., 14,900 units, 65% completed					74,500
	31	Direct materials, 73,000 units	222,650				297,150
	31	Direct labor	138,000				435,150
	31	Factory overhead	140,300				575,450
	31	Goods transferred, 77,500 units			554,125		21,325
	31	Bal., ? units, 25% completed					21,325

a. Determine the number of units in work in process inventory at the end of the month.
units

b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May. Assume that direct materials are placed in process during production.

Whole units to be accounted for	units
Whole units to be assigned costs	units
Equivalent units of production	units

Answer 1

Requirement a

Units in ending Inventory = 10,400 units

Working

Reconciliation of Units
A	Beginning WIP	14,900
B	Introduced	73,000
C=A+B	TOTAL	87,900
D	Transferred out	77,500
E=C-D	Ending WIP	10,400

Requirement b

Whole units to be accounted for	87,900 units
Whole units to be assigned costs	87,900 units
Equivalent units of production	80,100 units

.

Working

Statement of Equivalent Units(Weighted average)
	Units			Complete %	Equivalent units
Transferred out	77,500			100%	77,500
Ending WIP	10,400			25%	2,600
Total	87,900			Total	80,100