The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production with respect to conversion for August using the weighted-average inventory method. Tons of Product Percent of Conversion Added
Beginning Work in Process 230,000 60%
Goods started 570,000 100%
Goods completed 620,000 100
Ending Work in Process 180,000 70%

a. 758,000
b. 800,000
c. 620,000
d. 746,000

Total equivalent units= 746,000

Explanation:

Giving the following information:

Beginning Work in Process 230,000 60%

Goods started 570,000 100%

Goods completed 620,000 100

Ending Work in Process 180,000 70%

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production:

Units completed in the period= 620,000

quivalent units in ending inventory WIP= (180,000*0.7)= 126,000

Total equivalent units= 746,000

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.