Question

The information below was obtained from the records of the first processing department of moore company for the month of may. The company uses the weighted-average method in its process costing system. Units labor and overhead percentage complete work in process, may 1 10,000 40% units started 64,000 completed and transferred out 60,000 work in process, may 31 14,000 70% all materials are added at the beginning of the process. The equivalent units for labor and overhead for the month

Answer 1

Answer:

The information below was obtained from the records of the first processing department of Moore Company for the month of May. The company uses the weighted-average method in its process costing system. Labor and Overhead Units Percentage Complete Work in Process, May 1 0,000 40% Units Started 64,000 Completed and Transferred Out 60,000 Work in Process,May 31 14,000 70%. All materials are added at the beginning of the process. The equivalent units for materials for the month of May were: _____

Weighted-Average Method for Equivalent Units:

The process costing techniques such as weighted-average method and FIFO (First-In-First-Out) method are used for determining the equivalent number of units produced and corresponding cost incurred in every department of the manufacturing process with respect to material cost and conversion cost during a given period.

Answer and Explanation:

The calculated number of equivalent units for materials for the month of May is _74,000._

The number of equivalent units for the month of May is given by:

= Number of units completed and transferred out + (ending work in process inventory * percentage completion with respect to materials cost)

= 60,000 + (14,000 * 100%)

= 74,000