Refer to the information in Exercise 20-4 and compute the department’s equivalent units of production for direct materials for each of the three separate assumptions a, b, and c using the FIFO method.

Data From Exercise 20-4

The first production department in a process manufacturing system reports the following unit data.

Compute this production department’s equivalent units of production for direct materials under each of the following three separate assumptions using the weighted average method.

a. All direct materials are added to products when processing begins.
b. Beginning inventory is 40% complete as to direct materials costs. Ending inventory is 75% complete as to direct materials costs.
c. Beginning inventory is 60% complete as to direct materials costs. Ending inventory is 30% complete as to direct materials costs.

Transcribed Image Text:

Beginning work in process inventory... Units started and completed ...... 24,000 units 56,000 units Units completed and transferred out ... 80,000 units Ending work in process inventory...... 16,000 units