Asked by Rachel Hwang on Jul 11, 2024
Verified
At the beginning of the month,the Forming Department of Martin Manufacturing had 10,000 units in inventory,30% complete as to materials,and 10% complete as to conversion.During the month the department started 60,000 units and transferred 62,000 units to the next manufacturing department.At the end of the month,the department had 8,000 units in inventory,80% complete as to materials and 60% complete as to conversion.If Martin Manufacturing uses the weighted average method of process costing,compute the equivalent units for materials and conversion respectively for the Forming Department.
A) 68,400 materials; 66,800 conversion.
B) 58,400 materials; 56,800 conversion.
C) 59,000 materials; 61,000 conversion.
D) 65,400 materials; 66,800 conversion.
E) 65,400 materials; 65,800 conversion.
Weighted Average Method
A costing method used to determine the average cost of inventory by weighting the cost of goods available for sale by the total units available.
Equivalent Units
A concept used in cost accounting to denote the amount of finished goods units that could have been produced given the total amount of direct materials, labor, and overhead costs incurred.
- Evaluate equivalent units of production by employing the weighted average method.
- Perceive the importance and methodology for direct materials, conversion expenditures, and equivalent units in process costing.
Verified Answer
Learning Objectives
- Evaluate equivalent units of production by employing the weighted average method.
- Perceive the importance and methodology for direct materials, conversion expenditures, and equivalent units in process costing.
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