Question

The Assembly Department of​ GigaGo, Inc., manufacturer of​ computers, had 500 units of beginning inventory in​ September, and 5 comma 000 units were transferred to it by the Production Department. The Assembly Department completed 2 comma 500 units during the month and transferred them to the Packaging Department. Calculate the total number of units accounted for by the Assembly Department if it had 3 comma 000 units in ending inventory. The weightedminusaverage method is used.

A. 2, 500 units
B. 3, 500 units
C. 500 units
D. 3,000 units

Answer 1

Answer:

A. 2, 500 units

Explanation:

Beginning Units                                               500

Units Received                                                5,000

Total                                                                   5,500

Units Transferred to next department           2,500

Ending  Inventory                                            3000

Total                                                                  5,500

Units to account for= Beginning Inventory + Units Started- Ending Inventory

                                = 500 [phone]= 2500

This is the key feature of weighted average method that that equivalent units of activity is calculated without making a distinction as to whether activity occurred int the current accounting period or the preceding period.