The following refers to units processed by a breakfast cereal maker in August. C

Question

The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

Multiple Choice

766,800

802,000

610,200

725,280

881,880

Units of
Product Percent of Conversion Added Beginning Work in Process 261,000 60 % Units started 541,000 100 % Units completed 610,200 100 % Ending Work in Process 191,800 60 %

Multiple Choice

766,800

802,000

610,200

725,280

881,880

Explanation / Answer

SOLUTION

Equivalent units of production = 725,280

Equivalent units of production completed & transferred out = 610,200

Equivalent units of production in Ending Work in Process = 191,800 * 60% = 115,080

Equivalent units of production = 610,200 + 115,080

= 725,280

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