Reference: 04-04
The activity in Nolan Company's Blending Department for the month of April is given below:
$$\begin{array} { | c | l | l | }
\hline & \begin{array} { l }
\text { Number of } \
\text { Units }
\end{array} & \begin{array} { l }
\text { Labowr and Overhead } \
\text { (Percentage Complete) }
\end{array} \
\hline \text { Work in process } & & \
\hline \text { inventory, April 1 } & 8,000 & 50 \% \
\hline \text { Started into process } & & \
\hline \text { during the month } & 50,000 & \
\hline \text { Work in process } & & \
\hline \text { inventory, April } 30 & 10,000 & 70 \% \
\hline
\end{array}$$ All materials are added at the beginning of processing in the Blending Department.
-The equivalent units of production for material for the month, using the weighted-average method, are?
A)58,000 units.
B)48,000 units.
C)50,000 units.
D)52,000 units.

Question

Reference: 04-04
The activity in Nolan Company's Blending Department for the month of April is given below:
 $$\begin{array} { | c | l | l | } 
\hline & \begin{array} { l } 
\text { Number of } \
\text { Units }
\end{array} & \begin{array} { l } 
\text { Labowr and Overhead } \
\text { (Percentage Complete) }
\end{array} \
\hline \text { Work in process } & & \
\hline \text { inventory, April 1 } & 8,000 & 50 \% \
\hline \text { Started into process } & & \
\hline \text { during the month } & 50,000 & \
\hline \text { Work in process } & & \
\hline \text { inventory, April } 30 & 10,000 & 70 \% \
\hline
\end{array}$$ All materials are added at the beginning of processing in the Blending Department.
-The equivalent units of production for material for the month, using the weighted-average method, are?
A)58,000 units.
B)48,000 units.
C)50,000 units.
D)52,000 units.

Quizplus · Accepted Answer

Since all materials are added at the beginning of the processing, the equivalent units for materials would be the total units started and completed during the month plus the entire beginning inventory, because materials are 100% complete for these units. This includes the 50,000 units started during the month plus the 8,000 units from the beginning inventory, totaling 58,000 units. The work in process inventory at the end of the month does not affect the calculation for materials because the materials are added at the beginning.

Reference: 04-04 the Activity in Nolan Company's Blending Department for the Month

Reference: 04-04
the Activity in Nolan Company's Blending Department for the Month