Beginning Work in Process Inventory was 10,000 units that were 20% complete and 40,000 units started, with ending Work in Process Inventory of 8,000 units 40% that were complete.

If materials are added at the beginning of the process and conversion costs occur uniformly during processing, what are the equivalent units for material and conversion costs respectively under a weighted-average method?

Material EUP = 5000

Conversion Costs EUP = 51,200

Explanation:

Under weighted average method

Beginning Work in Process Inventory            10,000

Units Started                                                  = 40,000

Units to account for                                           50,000

In the Work In Process for Conversion Costs

Beginning Work In Process (10,000*20 %)   = 2000 were complete

Work done on beginning inventory = 10,000- 2,000= 8,000

Units Started                                                   = 40,000

Add Ending Inventory (8000*40%)                 3200

Units to account for =                                     51,200

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