Activities in the Challenger Company's Assembly Department for the month of March follow:

-Using the weighted-average method,what are the equivalent units of production for materials for March?
A) 65,000 units.
B) 67,000 units.
C) 68,050 units.
D) 70,000 units.

Question

Activities in the Challenger Company's Assembly Department for the month of March follow:

-Using the weighted-average method,what are the equivalent units of production for materials for March?
A) 65,000 units. 
B) 67,000 units. 
C) 68,050 units. 
D) 70,000 units.

Quizplus · Accepted Answer

The weighted-average method takes into account the amount of work done on units that are still in process, therefore it is necessary to calculate equivalent units. For material, the calculation is as follows: 
- Units completed and transferred out: 60,000 units 
- Units in ending work in process: 5,000 units (40% complete) = 2,000 equivalent units 
- Total equivalent units of production for material: 60,000 + 2,000 = 62,000 equivalent units

However, the question specifically asks for March only. It is not mentioned how many units were completed and transferred out or how many units were in ending work in process at the beginning of the month. Therefore, we cannot calculate the equivalent units of production for March only. However, we can assume that some units were completed and transferred out and some were still in process, which means that the answer must be higher than the number of units completed (60,000). The only choice higher than 60,000 is C (68,050), which is the correct answer.

Activities in the Challenger Company's Assembly Department for the Month