Problem:
Geller Manufacturing uses a process cost system to manufacture sensors for the security industry. The following information pertains to operations for the month of March.
Units Beginning work-in-process inventory, March 1 12,000
Started in production during March 110,000
Completed production during March 88,000
Ending work-in-process inventory, March 31 34,000
The beginning inventory was 70 percent complete for materials and 30 percent complete for conversion costs. The ending inventory was 90 percent complete for materials and 50 percent complete for conversion costs.
Costs pertaining to the month of March are as follows:
Beginning inventory costs are: materials, $44,400; conversion cost $30,500.
Costs incurred during March are: material used, $588,000; conversion cost $624,000
Using the weighted average method the total equivalent units of production for direct material is:
a.$120,000
b.$118,600
c.$116,000
d.$105,000