Oasis Company adds all materials at the beginning of its manufacturing process. Production information for selected months of the year follows:
E3-5 (Algo) Weighted-Average Method [LO 3-2, 3-3] Beginning Work in Process Ending Work in Process Conversion Conversion
Complete Units Units Complete
Months Untis (percent) Started Transferred out Units Percent
February 1300 46 --- 19400 6600 24 June 4300 75 24100 --- 3800 39September --- 27 25600 25600 2400 60December 2900 35 22400 21100 --- 73 Equivalent UnitsMonth Material Conversion February June September December
Required:
1. Reconcile the number of physical units to find the missing amounts.
2. Calculate the number of equivalent units for both materials and conversion for each month using the weighted-average method.

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ayokenny2001 ayokenny2001 · Answer 1 · 2020-10-13T15:20:55+02:00

Answer:

Please see solution below and attached

Explanation:

1. To calculate the number of physical units worked on and the missing figures, we will make use of the formula below;

Beginning inventory + Started = Transferred out + Ending inventory

For February,

1,300 + Started = 19,500 + 6,600

Started = 24,700

For June,

4,300 + 24,100 = Transferred out + 3,800

Transferred out = 24,600

For September,

Beginning inventory + 25,600 = 25,600 + 2,400

Beginning inventory = 2,400

For December,

2,900 + 22,400 = 21,100 + Ending inventory

Ending inventory = 4,200

2. Calculate the number of equivalent units for both materials and conversion for each month using the weighted average method.

• Please find attached detailed solution to question number 2.