Question

The ALG Manufacturing Company has gathered the following information for the month of September: • 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs)• 60,000 units were started into production• 50,000 units were completed and transferred to the next department• The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.What are the equivalent units of production (EUP) for the conversion costs in the month of September assuming ALG uses weighted-average process costing? A. 64,500B. 56,000C. 61,500D. 54,000

Answer 1

Answer:

B. 56,000

Explanation:

6000   beginning

60000 started

-50000 complete and transferred

16,000 ending

Complete and trasfers      50,000

Ending  WIP 16,000 x 3/8 = 6,000

Total Equvalent units           56,000

Under the weighted average, equivalent units of production are a figure of the units completed and transferred and ending WIP