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Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Calculate the equivalent units of production for the year: Beginning Work in Process (30% complete, $1,300) 220 units Ending inventory of Work in Process (70% complete) 420 units Total units started during the year 3,400 unit

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Answer:

Equivalent units of production for the year are 3428 units.

Explanation:

An equivalent unit of production is an expression of the amount of work done by a manufacturer on units of output that are partially completed at the end of an accounting period. Basically the fully completed units and the partially completed units are expressed in terms of fully completed units.

In this problem 3428 units are equivalent units. The detail calculation is given below.

                                   Units      Already          Completed in     Calculation

                                               Completed           period

Begining Stock            220           66                      154             220*70%

Started In period         3400          0                      2980          3400-420

Ending Stock                 420          0                       294           420*70%

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