Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month.
-If Nyman continues to successfully employ lean production and starts 140,000 units into production during April (the next month),the April equivalent units for conversion costs using the weighted-average method would be:
A)150,000 units
B)140,000 units
C)190,000 units
D)160,000 units

Question

Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month. 
-If Nyman continues to successfully employ lean production and starts 140,000 units into production during April (the next month),the April equivalent units for conversion costs using the weighted-average method would be:
A)150,000 units 
B)140,000 units 
C)190,000 units 
D)160,000 units

Quizplus · Accepted Answer

Weighted-average method
With lean production there should be no beginning or ending inventories.
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Nyman Company Successfully Switched to a Lean Production System at the Beginning