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Equivalent Units in Weighted Average Process Costing

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Andromeda Glass Company manufactures decorative glass products. The firm employs a process costing
system for its manufacturing operations. All direct materials are added at the beginning of the
process, and conversion costs are incurred uniformly throughout the process. The company's production
schedule for August follows.

Units
Work in process on August 1 (60% complete as to conversion) ...................................................................... 1,000
Units started during August ......................................................................................................................... 5,000
Total units to account for ..................................................................................................................... 6,000
Units from beginning work in process, which were completed and transferred out during August ..................... 1,000
Units started and completed during August ................................................................................................... 3,000
Work in process on August 31 (20% complete as to conversion).................................................................... 2,000
Total units accounted for ..................................................................................................................... 6,000

Calculate each of the following amounts using weighted-average process costing.

a. Equivalent units of direct material during August.
b. Equivalent units of conversion activity during August.

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Solution Summary

This solution illustrates how to compute equivalent units of materials and conversion activity using the weighted-average process costing method.

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