Clopack Company manufactures one product that goes through one processing depart

Question

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method to account for units and costs. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method to account for units and costs. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

Explanation / Answer

The answer is 41,900 units.

How you find that is find the amount of transfered out to Finished goods. Which would be Beginning WIP + Started into prodution- Ending WIP which would be in this case 4,700+37,200- 8,200= 33,700.

33700 units are transfered out to Finished Goods. 8,200 are the ending inventory. So when we go to equivalent units its the amount transfered out to finished goods ( in this case 33,700) + the completion amount of materials in ending inventory. (100%) so your problem should be 33,700 + (100%x8,200) =

Now if that completion of materials in the ending inventory was lets say 90% it would be 33,700 + (90%x8,200)= 44,580

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