The May 1 work in process inventory consisted of 134,000 pounds with $300,160 in

Question

The May 1 work in process inventory consisted of 134,000 pounds with $300,160 in materials cost and $191,620 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 349,000 pounds were started into production. The May 31 inventory consisted of 47,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.

Required: 1. Determine the equivalent units of production for May.

Explanation / Answer

Materials

Conversion

Equivalent units of production for May

483000

468900

Explanation;

1. First of all let’s calculate Units completed & transferred to next department;

Units in Beginning WIP + Units started into production – Ending WIP

Units completed & transferred (134000 + 349000 – 47000)

= 436000

2. Now let’s calculate Equivalent units of production for May;

Materials

Conversion

Units completed & transferred

436000

436000

Add: Ending WIP

For materials (47000 * 100%)

47000

For conversion (47000 * 70%)

32900

Equivalent units of production for May

483000

468900

Materials

Conversion

Equivalent units of production for May

483000

468900

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