Department E had 4,000 units in Work in Process, that were 40% completed at the beginning of the period, at a cost of $12,500. 14,000 units of direct materials were added during the period, at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for materials, if the average cost method is used to cost inventories was:.a. 15,650b. 18,000c. 17,250
d. 17,700

Total equivalent units= 17,250 units

Explanation:

Under the weighted average method of valuation, to account for completed units, it is assumed that the entire degree of work required to a complete a set of work is done in the period under consideration.So there is no separation of the completed units into opening inventory and fully worked.

Equivalent units = Degree of completion× units of inventory

Item                           units                                        Equivalent unit

Completed                 15,000           100%× 15,000 =  15,000

Closing inventory        3,000            75%× 3,000 =     2,250

Total equivalent units                                                    17,250

Total equivalent units= 17,250 units

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