The following information pertains to Mack Company: $\begin{array}{ll}
\text { Work-in-process inventory, December } 1 \text { (30\% complete) } & 20,000 \text { units } \
\text { Units transferred in } & 50,000 \text { units } \
\text { Work-in-process inventory, December } 31(60 \% \text { complete }) & 16,000 \text { units }
\end{array}$ Materials are added at the start of the process.
How many equivalent units for materials would there be using the weighted average method?
A)50,000 units
B)57,600 units
C)70,000 units
D)86,000 units

Question

Quizplus · Accepted Answer

Under the weighted average method, equivalent units for materials are calculated by adding units transferred out to the ending work-in-process inventory. Since materials are added at the start, all units in beginning and ending inventory are considered 100% complete for materials. Therefore, equivalent units = 50,000 (transferred) + 16,000 (ending WIP) = 66,000 units.

The Following Information Pertains to Mack Company Materials Are Added at the Start of the Process