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Kramer Corp. began the period with 5,200 units in process that were 100% complete
for materials and 60% complete for conversion, and ended the period with 26,000
units completed and 6,500 units still in process. Work in process was 100% complete
for materials and 70% complete for conversion costs.
Required:
Using the weighted average method, compute the equivalent units of production for
materials and conversion for the period.
Solution:
Direct Materials Conversion Costs
Units completed 26,000 = 26,000 × 100% 26,000 = 26,000 × 100%
Ending work in process 6,500 = 6,500 × 100% 4,550 = 6,500 × 70%
Total 32,500 = 26,000 + 6,500 30,550 = 26,000 + 4,550
Equivalent units = physical units × percentage of completion