The production department in a process manufacturing system completed 369,000 units of product and transferred them to finished goods during a recent period. Of these units, 69,000 were in process at the beginning of the period. The other 300,000 units were started and completed during the period. At period end, 32,000 units were in process.
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Prepare the department’s equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted average method for process costing.
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1.
| EUP for Materials |
| Goods completed (369,000 EUP × 100%) = 369,000 |
| Ending work in process (32,000 EUP × 100%) = 32,000 |
2.
| EUP for Materials |
| Goods completed (369,000 EUP × 100%) = 369,000 |
| Ending work in process (32,000 EUP × 75%) = 24,000 |
3.
| EUP for Materials |
| Goods completed (369,000 EUP × 100%) = 369,000 |
| Ending work in process (32,000 EUP × 30%) = 9,600 |
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