Question

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 66,000 were in process in the production department at the beginning of April and 264,000 were started and completed in April. April's beginning inventory units were 65% complete with respect to materials and 35% complete with respect to conversion. At the end of April, 88,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.

1. Compute the number of units transferred to finished goods.

2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.

The production department had $918,775 of direct materials and $723,261 of conversion costs charged to it during April. Also, its beginning inventory of $185,284 consists of $142,285 of direct materials cost and $42,999 of conversion costs.
e

Answer 1

Number of units transferred to finished goods = 66000+264000= 330000
2
Equivalent units of production (EUP)- weighted average method
	Units	%Materials	EUP-Materials	%Conversion	EUP-Conversion
Units completed and transferred out	330000	100%	330000	100%	330000
Ending work in process	88000	80%	70400	30%	26400
Total units	418000		400400		356400
Number of equivalent units:
Materials = 400400
Conversion = 356400