Question

Equivalent Units of Production: weighted average method The Converting Department of Tender Soft Tissue Company uses the weighted average method and had 2,500 units in work in process that were 70% complete at the beginning of the period. During the period, 31,500 units were completed and transferred to the Packing Department. There were 1,400 units in process that were 10% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. units b. Determine the number of equivalent units of production for the period. Assume that direct materials are placed in process during production. units

Answer 1

Answer:

(a)

Number of whole units to be accounted for and to be assigned costs for the period                    = Units completed and transferred out + Ending Units in Process                    = 31,500 units + 1,400 units                    = 32,900 Units

Number of whole units to be accounted for     = 32,900 Units

(b)

Number of equivalent units of production              = Units completed and transferred out + (Ending Units in Process x % of Completion)              = 31,500 units + (1,400 units x 10% )             = 31,500 + 140 Units             =   31,640 Units

Number of equivalent units of production     =   31,640 Units