A company uses a process costing system. its weaving department completed and transferred out 120,000 units during the current period. the ending inventory in the weaving department consists of 40,000 units (20% complete with respect to direct materials and 60% complete with respect to conversion costs. determine the equivalent units of production for the weaving department for direct materials and conversion costs assuming the weighted average method.
120, 000 units completed 60 % is complete This translates to 60*40,000/40 =60, 000 The equivalent units, then, are: 120,000- (60,000+40,000) =20, 000 units
