a company has two manufacturing departments, forming and painting. the company uses the weighted - average…

a company has two manufacturing departments, forming and painting. the company uses the weighted - average method and it reports the following data. units completed in the forming department are transferred to the painting department. units completed and transferred out: 120,000; ending work in process inventory: 40,000. direct materials percent complete: 100% for units completed and transferred out, 20% for ending work in process inventory. conversion percent complete: 100% for units completed and transferred out, 60% for ending work in process inventory. determine the equivalent units of production for the forming department for direct materials and conversion costs assuming the weighted average method. multiple choice: 120,000 direct materials; 120,000 conversion; 120,000 direct materials; 160,000 conversion; 128,000 direct materials; 120,000 conversion; 128,000 direct materials; 144,000 conversion

a company has two manufacturing departments, forming and painting. the company uses the weighted - average method and it reports the following data. units completed in the forming department are transferred to the painting department. units completed and transferred out: 120,000; ending work in process inventory: 40,000. direct materials percent complete: 100% for units completed and transferred out, 20% for ending work in process inventory. conversion percent complete: 100% for units completed and transferred out, 60% for ending work in process inventory. determine the equivalent units of production for the forming department for direct materials and conversion costs assuming the weighted average method. multiple choice: 120,000 direct materials; 120,000 conversion; 120,000 direct materials; 160,000 conversion; 128,000 direct materials; 120,000 conversion; 128,000 direct materials; 144,000 conversion

Answer

Explanation:

Step1: Calculate equivalent units of direct materials

Equivalent units = Units transferred out + (End - work in - process units × Direct materials percent complete). Units transferred out are 120,000 and ending work - in - process units are 40,000 with 20% direct materials completion. So, $120000+(40000\times20%)=120000 + 8000=128000$.

Step2: Calculate equivalent units of conversion costs

Equivalent units = Units transferred out+(End - work in - process units × Conversion percent complete). Units transferred out are 120,000 and ending work - in - process units are 40,000 with 60% conversion completion. So, $120000+(40000\times60%)=120000+24000 = 144000$.

Answer:

128,000 direct materials; 144,000 conversion