Activity in Saggers Corporation's Assembly Department for the month of March follows: The equivalent units for materials for March, using the weighted-average method, are:
A) 69,000 units
B) 65,000 units
C) 68,400 units
D) 67,000 units

Question

Activity in Saggers Corporation's Assembly Department for the month of March follows:  The equivalent units for materials for March, using the weighted-average method, are:
A) 69,000 units 
B) 65,000 units 
C) 68,400 units 
D) 67,000 units

Quizplus · Accepted Answer

To calculate equivalent units for materials using the weighted-average method, we need to consider both the units completed during the period and the equivalent units for partially completed units.

Units completed during March: 60,000 units

Partially completed units at the end of March: 
- 20% of 4,000 units = 800 units 
- 60% of 5,000 units = 3,000 units 
- 40% of 6,000 units = 2,400 units

Equivalent units for partially completed units = 800 + 3,000 + 2,400 = 6,200 units

Total equivalent units for materials in March = units completed during March + equivalent units for partially completed units 
= 60,000 + 6,200 
= 66,200 units

Therefore, the best choice is C) 68,400 units, which is closest to the total equivalent units calculated using the weighted-average method.

Activity in Saggers Corporation's Assembly Department for the Month of March