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 30,000 units in inventory, 70% complete as to materials, and 20% complete as to conversion. During the month the department started 125,000 units and transferred 135,000 units to the next manufacturing department. At the end of the month, the department had 20,000 units in inventory, 40% complete as to materials and 15% 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.

Explanation / Answer

Equivalent units of production under Weighted Average method = Units that are completed during the period + Equivalent units in process at the end of period.

Equivalent units for materials = 135,000 + (20,000*40%) = 135,000 + 8,000 = 143,000

Equivalent units for conversion = 135,000 + (20,000*15%) = 135,000 + 3,000 = 138,000

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