Answer (D) is correct . The difference between the weighted-average and FIFO methods of process costing is how BWIP is handled. FIFO makes a distinction between the costs in BWIP and the costs of goods started this period. Weighted average does not. Thus, when there is no BWIP, there is no difference between the two costing methods. Because 6,000 units have been started (1,000 BWIP + 5,000 started this period), and all materials are added at the beginning of the process, equivalent units for materials equal 6,000.
Answer (A) is incorrect because Units started and completed in November plus 20% of ending work-in-process equals 3,400 units (3,000 + 400).
Answer (B) is incorrect because The number of units started and completed in November plus units completed and transferred out from BI plus 20% of ending work-in-process equals 4,400 units (3,000 + 1,000 + 400).
Answer (C) is incorrect because The number of units started in November is 5,000.
|
Using the weighted-average method, Levittown’s equivalent units for direct materials for November are
