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Assume the following information: Percent Complete Milling Department Units Materials Conversion Beginning work in process inventory 300 45 % 30 % Units started into production during March 5,900 Units completed during March and transferred to the next department 5,800 100 % 100 % Ending work in process inventory 400 40 % 45 % Using the weighted-average method, what is the equivalent units of production for materials

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Answer:

Equivalent units of production for materials = 5960

Explanation:

Given:

Units transferred out = 5800

Units in ending inventory = 400

%age of completion for conversion = 40%

To calculate the equivalent units of production by using the formula:

Equivalent units of production for materials = units transferred out + ( units in ending inventory × %age of completion for conversion)

= 5800 + ( 400 × 40/100)

= 5800 + ( 400 × 0.4)

= 5800 + 160

= 5960

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