Question

Question: The Plastic Flowerpots Company has two manufacturing departments, molding, and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to materials. During the month, the molding department started 18,000 units. At the end of the month, the molding department had 3,000 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department.

Cost information for the molding department for the month is as follows:

Beginning work in process inventory (direct materials)	$ 1,200
Direct materials added during the month	27,900

Using the weighted-average method,(b) cost per equivalent unit of production for materials for the month. (Round to two decimal places.)

Short answer

The equivalent unit of production is $19,400.

Step-by-step solution

Meaning of Weighted averages method

A weighted average computation accounts for the shifted levels of importance of the numbers in a data collection. Each value increases a specified weight within the data set before the ultimate computation is completed when calculating a weighted average.

Meaning of Work-in-process

Work in progress refers to items that have been partially completed but are still in the manufacturing process. These objects are in-between locales or separate workstations and are primarily undergoing a specific procedure in the manufacturing cycle.

Determining Equivalent units of production-Weighted average

Units completed & transferred out $\left(17,000\times 100\%\right)$	17,000
Units of ending work-in-process
Direct materials $\left(3,000\times 80\%\right)$	2,400
Equivalents unit of production	$19,400