Carver Inc uses the weightedaverage method in its process co

Carver Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company\'s first processing department for a recent month.

Work in process, beginning:

Units in process................................................700

Percent complete with respect to materials.......50%

Percent complete with respect to conversion.....40%

Units started into production during the month..........23,000

Work in process, ending: Units in process................................................200

Percent complete with respect to materials.......80%

Percent complete with respect to conversion.....40%

Required: Using the weighted-average method, what are the equivalent units of production for materials and for conversion costs?

Solution

Answer:

Units

Material

Conversion

Transfer to the next department

23500

23500

work in progress

Material 80%

200

160

Conversion 40%

200

80

Equivalent units of production

23660

23580

Equivalents units of production for materials = 23660

Equivalents units of production for conversion= 23580

Working note:

1

Transfer to the next department unit

=700+23000-500

=23500