During November, the production department of a process operations system completed and transferred to finished goods 27,000 units that were in process at the beginning of November and 120,000 units that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 60% complete with respect to conversion. At the end of November, 27,000 additional units were in process in the production department and were 100% complete with respect to materials and 50% complete with respect to conversion. Compute the number of equivalent units with respect to materials for November using the weighted-average method.

174,000 units

Explanation:

The computation of the  number of equivalent units using the weighted-average method for the material cost is shown below:

= Units transferred × completed units + additional units × completion units

where,

Units transferred = Beginning units + started units

= 27,000 units + 120,000 units

= 147,000 units

So, the equivalent units is

= 147,000 units × 100% + 27,000 units × 100%

= 147,000 units + 27,000 units

= 174,000 units

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