Oh My Heart, Co. is a manufacturer that uses a process costing system and the weighted average method to calculate costs. The following information is available for the current period for the firm’s Cutting department:
Units: |
|
Beginning WIP inventory (100% complete as to materials and 55% complete as to conversion costs) |
75,000 |
Units started during the current period |
141,000 |
Units completed and transferred out to the next department during the period |
120,000 |
Ending WIP inventory (80% complete as to materials and 50% complete as to conversion costs) |
96,000 |
Costs: |
|
Beginning WIP inventory, direct materials costs |
$35,000 |
Beginning WIP inventory, conversion costs |
$43,500 |
Direct materials costs incurred during the current period |
$177,500 |
Conversion costs incurred during the current period |
$318,900 |
Calculate the equivalent units of production (EUP) with respect to
direct materials.
a. |
172,800 |
|
b. |
196,800 |
|
c. |
140,400 |
|
d. |
216,000 |
|
e. |
168,000 |
Correct answer--------------(b) 196,800
Working
Statement of Equivalent Units(Weighted average) | |||||||
Material | |||||||
Units | Complete % | Equivalent units | |||||
Transferred out | 120,000 | 100% | 120,000 | ||||
Ending WIP | 96,000 | 80% | 76,800 | ||||
Total | 216,000 | Total | 196,800 |
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