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., 22,700 units, 70% completed					113,500
	31	Direct materials, 111,200 units	339,160				452,660
	31	Direct labor	210,300				662,960
	31	Factory overhead	213,700				876,660
	31	Goods transferred, 118,000 units			843,700		32,960
	31	Bal., ? units, 30% completed					32,960

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

a. Determine the number of units in work in process inventory at the end of the month.
22700+111200-118000 = 15900

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	22700+111200 = 133900 units
Whole units to be assigned costs	133900 units
Equivalent units of production	118000+(15900*30%) = 122770 units