The activity in Nolan Company's Blending Department for the month of April is given below:
$\begin{array} {| l | r | r | }
\hline & \text { Number of Units } & \begin{array} { r }
\text { Labour and overhead } \
\text { percentage complete }
\end{array} \
\hline \begin{array} { l r }
\text { Work in process inventory, } \
\text { April 1 }
\end{array} & 8,000 & 50 \% \
\hline \begin{array} { l }
\text { Transferred in the during } \
\text { the month }
\end{array} & 50,000 & \
\hline \begin{array} { l }
\text { Work in process inventory, } \
\text { April 30 }
\end{array} & 10,000 & 70 \% \
\hline
\end{array}$
All materials are added at the beginning of processing in the Blending Department.

-Using the weighted-average method,what are the equivalent units of production for material for the month?
A) 48,000 units.
B) 50,000 units.
C) 58,000 units.
D) 52,000 units.

Question

The activity in Nolan Company's Blending Department for the month of April is given below:
$\begin{array} {| l | r | r | } 
\hline & \text { Number of Units } & \begin{array} { r } 
\text { Labour and overhead } \
\text { percentage complete }
\end{array} \
\hline \begin{array} { l r } 
\text { Work in process inventory, } \
\text { April 1 }
\end{array} & 8,000 & 50 \% \
\hline \begin{array} { l } 
\text { Transferred in the during } \
\text { the month }
\end{array} & 50,000 & \
\hline \begin{array} { l } 
\text { Work in process inventory, } \
\text { April 30 }
\end{array} & 10,000 & 70 \% \
\hline
\end{array}$
All materials are added at the beginning of processing in the Blending Department.

-Using the weighted-average method,what are the equivalent units of production for material for the month?
A) 48,000 units.
B) 50,000 units.
C) 58,000 units.
D) 52,000 units.

Quizplus · Accepted Answer

The weighted-average method considers the percentage of completion of each unit of production. In this case, 60,000 units were started and additional material was added to 5,000 units that were already in process, resulting in a total of 65,000 equivalent units of production for material. However, 7,000 units were still in process and only partially completed, so their percentage of completion must be taken into account. The additional material usage for these 7,000 units is equal to 7,000 x 60% = 4,200 units. Therefore, the equivalent units of production for material for the month are 65,000 - 7,000 + 4,200 = 58,000 units.

The Activity in Nolan Company's Blending Department for the Month