For each of the following situations, use the weighted average method to determi
ID: 2345205 • Letter: F
Question
For each of the following situations, use the weighted average method to determine the equivalent units of production for labor and overhead, assuming that they are continuously at the same percentage of completion.A.
Beginning WIP Inventory (45% complete) 10,000
Units started in production 350,000
Units Transferred Out 344,000
Ending WIP Inventory (60% Complete) 16,000
B.
Beginning WIP Inventory (30% complete) 40,000
Units Started in Production 480,000
Units transferred out ?
Ending WIP Inventory (70% Complete) 26,000
C.
Beginning WIP Inventory (55% Complete) 15,000
Units started in production 405,000
Units transferred out 415,800
Ending WIP Inventory (90% complete) ?
D.
Beginning WIP Inventory (25% complete) 10,800
Units started in production ?
Units transferred out 351,600
Ending WIP Inventory (45% complete) 18,300
Explanation / Answer
a. equivalent units of production=60%*16,000 +344,000-10,000*45% = 349,100 . b Ending WIP Inventory = 40,000+480,000 -Units transferred out Units transferred out =40,000+480,000 -26,000 = 494,000 equivalent units of production=494,000 +70%*26,000 -30%*40,000 = 500,200 c.Ending WIP Inventory =15,000 + 405,000 - 415,800 =4200 equivalent units of production=4200*90%+415,800-55%*15,000= 411,330 d. equivalent units of production=45%*18,300 +351,600 -25% *10,800 = 357,135 units
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