Question

A company's beginning Work in Process inventory consisted of units that were 90 % complete with respect to direct labor A total of were finished during the period and remaining in Work in Process inventory were 40 % complete with respect to direct labor at the end of the period . Using the weighted average method the equivalent units of production with regard to direct labor were :

Answer 1

Answer: 109,800 units

Explanation:

Equivalent Units of Production with respect to Direct Labor can be calculated as:

= Units completed during the period + Equivalent ending Work in Process Inventory (1)

Equivalent ending Work in Process Inventory = 32,000 ending units * 40% completion with respect to direct labor

= 12,800 units

EUP direct labor = 97,000 + 12,800 (1)

= 109,800 units