Question

Use the following information for the Exercises below. (The following information applies to the questions displayed below.) A production department in a process manufacturing system completed its work on 90,000 units of product and transferred them to the next department during a recent period. Of these units, 36,000 were in process at the beginning of the period. The other 54,000 units were started and completed during the period. At period-end, 18,000 units were in process. Exercise 16-4 Weighted average: Computing equivalent units LO C2 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. Units % Materials EUP—Materials Total 2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 80% complete as to materials and conversion costs. Units % Materials EUP-Materials Total 3. Beginning inventory is 70% complete as to materials and 30% complete as to conversion costs. Ending inventory is 20% complete as to materials and 70% complete as to conversion costs. Units % Materials EUP-Materials Total

Answer 1

Solution all parts

Equivalent Units of production (EUP)- Weighted Average Method
1. All direct material are added …………begin
	Units	% Materials	EUP-Materials
Units transferred	90000	100%	90000
Units in ending WIP inventory	18000	100%	18000
Total	108000		108000
Equivalent Units of production (EUP)- Weighted Average Method
2. Beginning inventory is 40% ………………..conversion cost
	Units	% Materials	EUP-Materials
Units transferred	90000	100%	90000
Units in ending WIP inventory	18000	80%	14400
Total	108000		104400
Equivalent Units of production (EUP)- Weighted Average Method
3. Beginning inventory is 70% complete …………………..cost.
	Units	% Materials	EUP-Materials
Units transferred	90000	100%	90000
Units in ending WIP inventory	18000	20%	3600
Total	108000		93600