Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department: Units:
Beginning Inventory: 25,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 110,000.
Units completed and transferred out: 135,000.
Ending Inventory: 30,000 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $43,000. Costs in beginning Work in Process - Conversion: $48,850.
Costs incurred in February - Direct Materials: $287,000. Costs incurred in February - Conversion: $599,150.
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Calculate the equivalent units of materials.
A) 144,000
B) 165,000
C) 110,000
D) 130,250
E) 140,000

Question

Quizplus · Accepted Answer

To calculate equivalent units of materials, we add together the equivalent units for beginning inventory and the equivalent units for units started and completed in February.

Equivalent units of beginning inventory = 25,000 units x 100% complete = 25,000 units 
Equivalent units of units started and completed = 110,000 units x 100% complete = 110,000 units

Total equivalent units of materials = 25,000 units + 110,000 units = 135,000 units

Therefore, the answer is choice B (165,000) as it is not listed in the options.

Sparky Corporation Uses the Weighted-Average Method of Process Costing