Exercise 3-5 Computing equivalent units of production—Weighted average L.O. C2, P4
During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the department at the beginning of April and 240,000 were started and completed in April. April’s beginning inventory units were 60% complete with respect to materials and 40% complete with respect to labor. At the end of April, 82,000 additional units were in process in the department and were 80% complete with respect to materials and 30% complete with respect to labor. Compute:
1. The number of units transferred to finished goods.
Total units transferred to finished goods
2 The number of equivalent units with respect to both materials used and labor used in the production department for April using the Weighted average method.
Equivalent units of production (direct materials)—Weighted average
Equivalent units of production (direct labor) —Weighted average
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