The following information pertains to the mixing department of Carson Company for September 2006:
The costs of work-in-process at September 1 for the mixing department were as follows:
Costs added by the mixing department during September were as follows:
Using the above information and the weighted average method, answer the following items regarding the mixing department for September 2006.
-The equivalent units of production for materials is
A) $118,000.
B) $125,200.
C) $130,000.
D) $142,000.

Question

The following information pertains to the mixing department of Carson Company for September 2006:
   The costs of work-in-process at September 1 for the mixing department were as follows:
  Costs added by the mixing department during September were as follows:
  Using the above information and the weighted average method, answer the following items regarding the mixing department for September 2006.
-The equivalent units of production for materials is
A) $118,000. 
B) $125,200. 
C) $130,000. 
D) $142,000.

Quizplus · Accepted Answer

To calculate equivalent units of production, we need to add together the units completed and the units in ending work-in-process inventory, adjusted for the percentage completion of those units. 
For materials:
Units completed: 30,000 
Ending work-in-process inventory: 10,000 (50% complete for materials) 
Equivalent units of production: 30,000 + (10,000 x 0.50) = 35,000 
Costs added during September for materials were $125,200, therefore the answer is B.

The Following Information Pertains to the Mixing Department of Carson