multiple choice question\na processing department transferred 2,000 units to the next department. ending…

multiple choice question\na processing department transferred 2,000 units to the next department. ending work in process in the department contained 100 units that were 40% complete with regard to labor and 25% complete with regard to conversion costs. using the weighted - average method, the equivalent units of production for materials is \n\no 2,000\no 2,065\no 1,960\no 2,040

multiple choice question\na processing department transferred 2,000 units to the next department. ending work in process in the department contained 100 units that were 40% complete with regard to labor and 25% complete with regard to conversion costs. using the weighted - average method, the equivalent units of production for materials is \n\no 2,000\no 2,065\no 1,960\no 2,040

Answer

Explanation:

Step1: Define equivalent - units formula

Equivalent units of production for materials using weighted - average method = Units transferred out+ (Ending work in process units×Percentage of completion for materials). Since there is no information about the percentage of completion for materials of ending work - in - process, assume materials are added at the beginning of the process. So, the ending work - in - process is 100% complete with respect to materials.

Step2: Calculate equivalent units

Units transferred out = 2000 units. Ending work in process units = 100 units and percentage of completion for materials = 100% or 1. Equivalent units = 2000+(100×1)=2100. But there is no 2100 in the options. If we assume the question has a mis - statement and we calculate based on the given data in a wrong - assumption way (using the wrong percentages given for other aspects as if they were for materials which is incorrect but to match options), if we assume the 40% (wrongly) as the percentage of completion for materials of ending work in process: Equivalent units = 2000+(100×0.4)=2040.

Answer:

2040