During March, the production department of a process manufacturing system comple

Question

During March, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of the units transferred, 21,000 were in process at the beginning of March and 190,000 were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 63% complete with respect to labor. At the end of March, 38,000 additional units were in process in the production department and were 100% complete with respect to materials and 20% complete with respect to labor. Compute the number of equivalent units with respect to both materials and direct labor respectively for March using the weighted-average method.

Explanation / Answer

units material direct labor % age completion units % age completion units opening WIP 21000 100% 21000 100% 21000 units started and completed 190000 100% 190000 100% 190000 closing WIP 38000 100% 38000 20% 7600 Total 249000 249000 218600

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