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Asked by Marisol Trejo on Jul 22, 2024

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Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.What are the equivalent units for materials for the month in the first processing department? A) 7,400 B) 9,300 C) 8,350 D) 950 A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:
Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: A total of 8,500 units were started and 7,400 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.What are the equivalent units for materials for the month in the first processing department? A) 7,400 B) 9,300 C) 8,350 D) 950 The ending inventory was 50% complete with respect to materials and 35% complete with respect to conversion costs.What are the equivalent units for materials for the month in the first processing department?

A) 7,400
B) 9,300
C) 8,350
D) 950

Equivalent Units

Equivalent units are a calculation in process costing that converts partially completed units into a number of equivalent fully completed units.

Weighted-Average Method

A cost flow assumption used in inventory valuation and process costing that smooths out price variations by averaging the costs.

Materials

The physical components used in the production of goods, including both raw inputs and manufactured parts.

  • Estimate the equivalent quantities for materials.
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Bertide NeptuneJul 27, 2024
Final Answer :
C
Explanation :
Equivalent units for materials = Units completed and transferred out + Equivalent units in ending inventory
Units completed and transferred out = 7,400 units
Equivalent units in ending inventory = 0.5 × 800 units (material) + 0.35 × 8,500 units (material)
= 400 + 2,975
= 3,375
Equivalent units for materials = 7,400 + 3,375 = 8,775
However, the 800 units in the beginning inventory were only 50% complete, so they need to be multiplied by 0.5, resulting in:
Equivalent units for materials = 8,775 - (800 × 0.5) = 8,375
Therefore, the equivalent units for materials for the month in the first processing department is 8,350 (rounded to the nearest whole number). The correct choice is C.

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