Question

At the beginning of the month, the Forming Department of Martin Manufacturing had 17,000 units in inventory, 30% complete as to materials, and 15% complete as to conversion. During the month the department started 67,000 units and transferred 72,500 units to the next manufacturing department. At the end of the month, the department had 11,500 units in inventory, 85% complete as to materials and 60% complete as to conversion. If Martin Manufacturing uses the weighted average method of process costing, compute the equivalent units for materials and conversion respectively for the Forming Department.

A) 82,275 materials; 79,400 conversion

B) 65,275 materials; 62,400 conversion

C) 64,450 materials; 69,550 conversion

D) 77,175 materials; 79,400 conversion

E) 77,175 materials; 76,850 conversion

Answer 1

Answer:

A) 82,275 materials; 79,400 conversion

Explanation:

Calculation of the Equivalent Units of Production with respect to Raw Materials and Conversion Costs

1. Raw Materials

Ending Work In Process (11,500 × 85%)                                =   9,775

Completed and Transferred (72,500 × 100%)                      = 72,500

Equivalent Units of Production with respect to Materials   = 82,275

2. Conversion Costs

Ending Work In Process (11,500 × 60%)                                =   6,900

Completed and Transferred (72,500 × 100%)                      = 72,500

Equivalent Units of Production with respect to Materials   = 79,400