A production department's output for the most recent month consisted of 8,000 units completed and transferred to the next stage of production and 5,000 units in ending Work in Process inventory.The units in ending Work in Process inventory were 50% complete with respect to both direct materials and conversion costs.Calculate the equivalent units of production for the month,assuming the company uses the weighted average method.
A)6,500 units.
B)9,000 units.
C)13,000 units.
D)5,500 units.
E)10,500 units.

Question

Quizplus · Accepted Answer

Using the weighted average method, we take into account the units completed and transferred out as well as the units in ending Work in Process inventory. We calculate the equivalent units of production as follows:
Direct Materials:
8,000 units completed + (5,000 units ending WIP x 50% complete) = 10,500 equivalent units
Conversion Costs:
8,000 units completed + (5,000 units ending WIP x 50% complete) = 10,500 equivalent units
Therefore, the equivalent units of production for the month is 10,500 units.

A Production Department's Output for the Most Recent Month Consisted