Red Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of October.
The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.
Costs pertaining to the month of October area as follows:
Beginning inventory costs: materials, $54,560; conversion cost, $35,560.
Costs incurred during October: materials used, $468,000; conversion cost, $574,040.

-Refer to the Figure.What would be the total equivalent units of production for direct materials when using the weighted average method?
A)92,000
B)101,600
C)113,600
D)116,000

Question

Red Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of October.
The beginning inventory was 60% complete for materials and 20% complete for conversion costs. The ending inventory was 90% complete for materials and 40% complete for conversion costs.
Costs pertaining to the month of October area as follows:
Beginning inventory costs: materials, $54,560; conversion cost, $35,560.
Costs incurred during October: materials used, $468,000; conversion cost, $574,040.
 
-Refer to the Figure.What would be the total equivalent units of production for direct materials when using the weighted average method?
A)92,000 
B)101,600 
C)113,600 
D)116,000

Quizplus · Accepted Answer

The weighted average method calculates equivalent units by adding units completed and transferred out to the equivalent units in ending inventory. The total equivalent units for direct materials would be 113,600.

Red Manufacturing Uses a Process Cost System to Manufacture Sensors