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The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method.

Units of Product Percent of Conversion Added
Beginning Work in Process 282,000 40%
Units started 578,000 100%
Units completed 637,000 100%
Ending Work in Process 223,000 50%

Respuesta :

Answer:

Total equivalent units of production = 748,500

Explanation:

This can be computed as follows:

Equivalent units of production (EUP) completed and transferred out = Units completed 100% = 637,000

EUP in Ending Work in Process = Units of Product * Percent of Conversion Added = 223,000 * 50% = 111,500

Therefore, we have:

Total equivalent units of production = EUP completed and transferred out + EUP in Ending Work in Process = 637,000 + 111,500 = 748,500

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