Chapter 8, Problem 18E

Compute Equivalent Units: Weighted-Average Method

• Conlon Chemicals manufactures paint thinner. Information on the work in process follows:
• Beginning inventory, 30,000 partially complete gallons.
• Transferred out, 157,500 gallons.
• Ending inventory (materials are 10 percent complete; conversion costs are 20 percent complete).
• Started this month, 180,000 gallons.

Required

1. a.      Compute the equivalent units for materials using the weighted-average method.
2. b.      Compute the equivalent units for conversion costs using the weighted-average method.