During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 65,000 were in process in the production department at the beginning of April and 260,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 87,000 additional units were in process in the production department and were 90% complete with respect to materials and 40% complete with respect to conversion. Required:
a. Compute the number of units transferred to finished goods.
b. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.

a. 238,000 units

b. Materials = 316,300 units, Conversion Costs = 272,800 units

Explanation:

Units transferred to finished goods = Beginning WIP units + Units Stared - Ending WIP units

therefore,

Units transferred to finished goods = 65,000 + 260,000 - 87,000 = 238,000 units

Calculation of Equivalent units of production in respect to material and conversion costs :

Note : Weighted Average Method is used. This focuses on the extent of work done on the physical units of outputs (Completed units and Ending WIP).

Materials : 238,000 x 100% + 87,000 x 90% = 316,300 units

Conversion : 238,000 x 100% + 87,000 x 40% = 272,800 units

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