On September 1, Delta Company had 31,350 units in process, which were 32% completed. Materials are added at the beginning of the process. During the month, 172,200 units were started and 181,700 completed. Ending work in process was 50% complete.
Calculate the equivalent units of production for materials if weighted average were used.
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Equivalent Units of Production (EUPs) are units in the work in process inventory calculated with regard to their degree of completion.
Using the Weighted Average Method means we assume 100 percent completion of units. Hence, the 31,350 units that are actually 32 percent complete with regard to materials are treated simply as 31,350 units.
Calculation of Equivalent Units of Production for materials in September:
Particulars | Units | |
Units Completed and transferred out | 181,700 | |
Beginning Work-in-process | 31,350 Units | |
Units Started into production | 172,200 Units | |
Less: Units Completed and Transferred | (181,700) Units | |
Ending Work-in-process | 21,850 | |
Total Equivalent Units of Production | 2,03,550 |
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