Reference: 04-05
The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: $$\begin{array} { | l | l | l | }
\hline & \begin{array} { l }
\text { Number of } \
\text { Units }
\end{array} & \begin{array} { l }
\text { Conversion Costs } \
\text { (Percent Complete) }
\end{array} \
\hline \text { Beginning work in process inventory } & 9,000 & 60 \% \
\hline \text { Units started into production } & 45,000 & - \
\hline \text { Units completed and transferred out } & 46,000 & - \
\hline \text { Ending work in process inventory } & 8,000 & 25 \% \
\hline
\end{array}$$ All materials are added prior to the beginning of work in the Blending Department.
-Assuming that Tru-Colour Paint Company uses the weighted-average method, the equivalent units of production for materials would be?
A)54,000 units.
B)48,000 units.
C)45,000 units.
D)46,000 units.

Question

Reference: 04-05
The following data relate to the Blending Department of Tru-Colour Paint Company for a recent month: $$\begin{array} { | l | l | l | } 
\hline & \begin{array} { l } 
\text { Number of } \
\text { Units }
\end{array} & \begin{array} { l } 
\text { Conversion Costs } \
\text { (Percent Complete) }
\end{array} \
\hline \text { Beginning work in process inventory } & 9,000 & 60 \% \
\hline \text { Units started into production } & 45,000 & - \
\hline \text { Units completed and transferred out } & 46,000 & - \
\hline \text { Ending work in process inventory } & 8,000 & 25 \% \
\hline
\end{array}$$ All materials are added prior to the beginning of work in the Blending Department.
-Assuming that Tru-Colour Paint Company uses the weighted-average method, the equivalent units of production for materials would be?
A)54,000 units.
B)48,000 units.
C)45,000 units.
D)46,000 units.

Quizplus · Accepted Answer

Since all materials are added at the beginning of the process in the Blending Department, the equivalent units for materials would be the total units that were started and completed during the period plus the units in beginning inventory. This includes all units completed and transferred out (46,000 units) plus all units still in process at the end of the period (8,000 units), totaling 54,000 units. The beginning inventory does not affect the calculation for materials because the materials are added at the beginning of the process.

Reference: 04-05 the Following Data Relate to the Blending Department

Reference: 04-05
the Following Data Relate to the Blending Department