Under the weighted average method, we assume that the work that was in BWIP was done during the current period. Therefore, EUP for materials under the weighted average method will include not only all units worked on this period, but also the number of units in BWIP. Direct Materials Units Completed 4,000 Starting of EWIP 2,000 Total EUP-WAVG 6,000 1,000 units were in BWIP and those were completed. 3,000 units were started and completed. Therefore, the number of units completed was 4,000. All direct materials are added at the beginning of the process, so the EUP for direct materials in ending WIP was equal to the number of physical units in EWIP. Total EUP using the weighted average method is thus 4,000 + 2,000 = 6,000.
This answer does not include the units that were in beginning WIP.
This is the number of equivalent units for conversion costs, not for direct materials.
This answer results from treating the units in ending WIP inventory as though they were conversion costs. All direct materials are added at the beginning of the process and conversion costs are added proportionately. Therefore, all of the direct materials have been added to the units in ending WIP inventory, not 20% of them.
|
Using the weighted-average method, the equivalent units for direct materials for November are