Chapter 20, Problem 5QS

To determine

Concept Introduction:

Equivalent Units of Production:

The equivalent units of production can be defined as the units which are partially completed to be counted as fully completed units based on their percentage of work done on them.

For example, the units in ending inventory are 1,000 units and 60 % completed. Thus, the equivalent units for ending inventory will be = 1,000 units X 60 % = 600 units.

If materials are added −

• In the beginning of the process, the ending inventory units are added in the direct materials equivalent units of production.
• At the end of the process, the ending inventory units are not added in the direct materials equivalent units of production.
• In the halfway point of the process, the ending inventory units are added in the direct materials equivalent units of production.

To compute:

Total equivalent units of production for conversion using weighted-average method.