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The output of a company's mixing department during the period consists of 25,000 units completed and transferred out, and 15,000 units in ending Work in Process that were 30% complete as to materials and conversion costs.Beginning inventory was 17,000 units that were 15% complete as to materials and conversion costs.
-Under the weighted-average method, what are the equivalent units of production for materials?
A)32,050
B)29,500
C)25,000
D)4,500

Question

Use the following information to answer questions 
The output of a company's mixing department during the period consists of 25,000 units completed and transferred out, and 15,000 units in ending Work in Process that were 30% complete as to materials and conversion costs.Beginning inventory was 17,000 units that were 15% complete as to materials and conversion costs.
-Under the weighted-average method, what are the equivalent units of production for materials?
A)32,050
B)29,500
C)25,000
D)4,500

Quizplus · Accepted Answer

To calculate the equivalent units of production for materials using the weighted-average method, we first need to calculate the equivalent units of production for both completed and ending Work in Process inventory.

For completed units, all the material and conversion costs have been fully incurred, so the equivalent units of production for materials is simply the number of units completed and transferred out, which is 25,000.

For ending Work in Process inventory, we need to calculate the equivalent units of production based on the degree of completion. The ending Work in Process inventory consists of 15,000 units that are 30% complete as to materials. Therefore, the equivalent units of production for materials in the ending Work in Process inventory is:

15,000 units × 30% = 4,500 equivalent units

To calculate the total equivalent units of production for materials, we add the equivalent units of production for completed units and ending Work in Process inventory:

25,000 + 4,500 = 29,500 equivalent units

Therefore, the best choice is B.

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