Equivalent Units of Production – Short Answer

Practice Question

Intro to Managerial Accounting
Process Cost Accounting
Equivalent Units of Production
Short Answer

A process costing system has the following data: Beginning WIP = 1,000 units (30% complete), Units Started = 5,000, Units Completed = 4,500, Ending WIP = 1,500 units (60% complete). Calculate equivalent units of production using the weighted-average method.

Answer +
Correct Answer: 5,400
Explanation +

Step 1: Identify Key Variables – Beginning WIP = 1,000, Started = 5,000, Completed = 4,500, Ending WIP = 1,500.

Step 2: Calculate Equivalent Units for Ending WIP – Equivalent Units = Ending WIP × % Complete = 1,500 × 60% = 900.

Step 3: Total Equivalent Units – Total Equivalent Units = Completed + Equivalent Units of Ending WIP = 4,500 + 900 = 5,400.

Step 4: Conclusion – The equivalent units of production using the weighted-average method is 5,400.