Exercise 16-4 Weighted average: Computing equivalent units LO C2

Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below. A production department in a process manufacturing system completed its work on 78,000 units of product and transferred them to the next department during a recent period. Of these units, 31,200 were in process at the beginning of the period. The other 46,800 units were started and completed during the period. At period-end, 17,400 units were in process. Exercise 16-4 Weighted average: Computing equivalent units LO C2 Prepare the production department's equivalent units of production for direct materials under each of three separate assumptions using the weighted average method for process costing. Equivalent Units of Production (EUP)Weighted Average Method 1. All direct materials are added to products when processing begins. Units % Materials EUP-Materials Goods completed 78,000 100% 78,000 Ending work in process 17.400 100% 17,400 Total 95,400 95.400 2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 80% complete as to materials and conversion costs. Units EUP-Materials % Materials 100% Goods completed Ending work in process Total 78,000 17,400 95,400 80% 78,000 13,9201 91.920 3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs. 3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs. Units % Materials EUPMaterials Goods completed Ending work in process Total Prepare the department's equivalent units of production with respect to direct materials under each of the three separate assumptions using the FIFO method for process costing. Equivalent Units of Production (EUP)-FIFO Method 1. All direct materials are added to products when processing begins. Units % Materials EUP-Materials Total 2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 80% complete as to materials and conversion costs. Units % Materials EUP-Materials Total 3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs. Units % Materials EUP-Materials Total