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A company's beginning Work in Process inventory consisted of 40,000 units that were 90% complete with respect to direct labor. A total of 110,000 were finished during the period and 45,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

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akiran007

Answer:

 Using the weighted-average method, the equivalent units of production with regard to direct labor were        132,500    

Explanation:

                                                  Units       % of Completion       EQUP

Completed                              110,000          100                     110,000

Ending Work in

Process

Inventory                                 45,000            50%                22,500

                                                 145,000                                 132,500

  Using the weighted-average method, the equivalent units of production with regard to direct labor were        132,500    

This is the key feature of weighted average method. The number of equivalent units is calculated without making a distinction as to whether the activity occurred in the current accounting period or preceeding period.                                    

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