Check my work View prev Required information The following information applies t
ID: 2413163 • Letter: C
Question
Check my work View prev Required information The following information applies to the questions displayed below The production department in a process manufacturing system completed 80,000 units of product and transferred them to finished goods during a recent period. Of these units, 24,000 were in process at the beginning of the period The other 56,000 units were started and completed during the period. At period-end, 16,000 units were in process 2.4 points eBook Hint Print References Prepare the department's equilvalent units of production with respect to direct materials under each of three separate assumptions using the weighted-average method for process costing All direct materials are added to products when processing begins oul EUP 2 Beginning inventory is 40% complete as to nuterials and coaversion costs Ending inventory is T5% complete as to materials and conversion costs
Explanation / Answer
Assupmtion 1: Units % Material EUP - Materials Units Started during the period 48,000 100% 48,000 total EUP 48,000 48,000 Assupmtion 2: Units % Material EUP - Materials Beginning Inventory 24,000 60% 14,400 Units Started during the period 48,000 100% 48,000 Closing inventory 16,000 75% 12,000 total EUP 88,000 74,400 Assupmtion 3: Units % Material EUP - Materials Beginning Inventory 24,000 40% 9,600 Units Started during the period 48,000 100% 48,000 Closing inventory 16,000 30% 4,800 total EUP 88,000 62,400 Working Note: CALCULATION OF THE NUMBER OF UNITS INTRODUCED DURING THE YEAR Closing inventory = 16,000 Units Add: Started and Completed during the period 56,000 Units Total 72,000 Units Less: Opening inventory 24,000 Units Units Introduced during the period 48,000 Units
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