a process manufacturer that uses the weighted - average method reports the following.\nbeginning work in…

a process manufacturer that uses the weighted - average method reports the following.\nbeginning work in process inventory\nunits completed and transferred out\nending work in process inventory\nequivalent units of production for conversion are:\nmultiple choice\n65,500.\n114,500.\n84,000.\n98,000.\n\n| | units | conversion percent complete |\n|--|--|--|\n| beginning work in process inventory | 28,000 | 80% |\n| units completed and transferred out | 98,000 | |\n| ending work in process inventory | 33,000 | 50% |
Answer
Explanation:
Step1: Recall equivalent - units formula
The formula for equivalent units of production using the weighted - average method for conversion costs is: Equivalent units = Units completed and transferred out+ (Ending work in process units×Percent complete for conversion).
Step2: Substitute values
We know that units completed and transferred out = 98,000 and ending work in process units = 33,000 with 50% completion for conversion. Equivalent units=$98000+(33000\times0.5)$
Step3: Calculate
First, calculate $33000\times0.5 = 16500$. Then, $98000 + 16500=114500$.
Answer:
114,500.