The first production department of Stone Incorporated reports the following for April.

Direct Materials Conversion
Percent Complete Percent Complete
Beginning work in process inventory 60,000 60% 40%
Units started this period 322,000
Completed and transferred out 300,000
Ending work in process inventory 82,000 80% 30%

Required:
Compute the number of equivalent units of production for both direct materials and conversion for April using the weighted average method.

Respuesta :

Using the weighted-average method, the number of equivalent units of production for direct materials and conversion are 365,600 units and 324,600 units, respectively.

What are the equivalent units of production?

Equivalent units of production are an accounting term that describes the amount of work done by a manufacturer on ending units of output at the end of an accounting period so that the partially completed units are expressed in terms of fully completed units.

Data and Calculations:

                                                   Units     Direct Materials       Conversion

Beginning work in

process inventory                  60,000         60%                             40%

Units started this period       322,000

Completed and

 transferred out                   300,000

Ending work in

process inventory                82,000         80%                             30%

Equivalent units of production:

                                     Units     Direct Materials       Conversion

Completed and

 transferred out     300,000         300,000               300,000

Ending work in

process inventory   82,000          65,600 (80%)        24,600 (30%)

Total equivalent units                365,600                324,600

Thus, using the weighted-average method, the number of equivalent units of production for direct materials and conversion are 365,600 units and 324,600 units, respectively.

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