During March,the production department of a process operations system completed and transferred to finished goods 25,000 units that were in process at the beginning of March and 110,000 units that were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion.Compute the number of equivalent units with respect to both materials and conversion respectively for March using the weighted-average method.
A)165,000 materials; 165,000 conversion.
B)135,000 materials; 119,000 conversion.
C)140,000 materials; 130,250 conversion.
D)165,000 materials; 144,000 conversion.
E)144,000 materials; 144,000 conversion.

Question

Quizplus · Accepted Answer

For materials, all 25,000 beginning units plus the 110,000 started and completed in March, and the 30,000 in process at the end of March are 100% complete, totaling 165,000 equivalent units. For conversion, the beginning inventory doesn't count since it's already 55% complete in the weighted-average method. Thus, conversion is calculated as 110,000 units started and completed plus (30,000 units * 30% completion), totaling 144,000 equivalent units.

During March,the Production Department of a Process Operations System Completed