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The Townson Manufacturing Company has gathered the following information for the month of September: 8,100 units in the beginning Work-in-Process Inventory (90% complete as to materials, 1/3 complete with respect to the conversion costs). 67,000 units were started into production. 57,000 units were completed and transferred to the next department. The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs. What are the equivalent units of production (EUPs) for materials in the month of September assuming Townson uses weighted-average process costing

Respuesta :

Answer:

Equivalent Units Production Cost = 63,787.5

Explanation:

To find out the Equivalent unit production first we have to calculate the ending inventory;

To compute the ending inventory

Transferred Units = Beginning Work in Process + Started Units - Ending Inventory

Ending Inventory = Beginning Work in Process + Started Units - Transferred Units

Ending Inventory = 8100 + 67000 - 57000

Ending Inventory = 18,100

To compute the Equivalent unit production;

Equivalent Units Production Cost = Transferred Units + (3/8 × Ending Inventory)

Equivalent Units Production Cost = 57,000 + (3/8 × 18,100)

Equivalent Units Production Cost = 63,787.5

gbenewaeternity

Answer:

The equivalent unit of production = 63,787.5 units

Explanation:

Given Data:

Unit transferred out = 57,000 units

Beginning work = 8,100 units

units started = 67,000 units

Units transferred out = beginning work + units started - Ending inventory

57,000 =8,100  + 67,000 - Ending inventory

57,000 = 75100 - Ending inventory

Ending inventory =75100 -57,000

                              = 18,100

Equivalent units of production for conversion cost  = Units transferred out + (3/8 * ending inventory)

                                                                             = 57,000 + (3/8 * 18,100)

                                                                              = 57,000 + 6787.5

                                                                              = 63,787.5

Therefore, the equivalent unit of production = 63,787.5 units

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