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Problem - The production department in a process manufacturing system completed 302,000 units of product and transferred them to finished goods during a recent period. Of these units, 72,000 were in process at the beginning of the period. The other 230,000 units were started and completed during the period. At period end, 40,000 units were in process.
Prepare the department's equivalent units of production with respect to direct materials under each of three separate assumptions using the weighted average method for process costing.
1. All direct materials are added to products when processing begins.
2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs.
3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs.
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