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Solve: The Equivalent Units of Production

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A company uses a process cost accounting system and the weighted-average method. The following information is available for its current year:

Goods in process, January 1, 2008.............................5,500 units, 80% complete
Goods in process, December 31, 2008........................8,800 units, 40% complete
Units completed and transferred to finished goods 46,900 units
Manufacturing costs during the year....................................$266,300.

Solve for the following:

(a) Calculate the equivalent units of productions for the year.

(b) Calculate the average cost per equivalent unit (round to the nearest cent).

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Solution Summary

This solution briefly shows how to calculate the equivalent units of production and average cost per equivalent unit. Although this response is very concise, it is easy to follow and provides all required calculations.

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