At the beginning of the month, the Painting Department of Skye Manufacturing had

Question

At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. During the month the department started 115,000 units and transferred 120,000 units to the next manufacturing department. At the end of the month, the department had 15,000 units in inventory, 40% complete as to materials and 10% complete as to conversion. If Skye Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Painting Department.

Multiple Choice

126,000 materials; 121,500 conversion.

112,000 materials; 117,500 conversion.

126,000 materials; 117,500 conversion.

121,500 materials; 126,000 conversion.

112,000 materials; 121,500 conversion.

Explanation / Answer

Equivalent unit under weighted average :

Material = 120000+(15000*40%) = 126000 units

Conversion = 120000+(15000*10%) = 121500 units

so answer is a) 126000 materials; 121500 conversion

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