Asked by Nitin Bhogaraju on Jun 03, 2024
Verified
A process with no beginning work in process completed and transferred out 85000 units during a period and had 50000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were:
A) 85000 equivalent units.
B) 135000 equivalent units.
C) 100000 equivalent units.
D) 70000 equivalent units.
Equivalent Units
A concept in cost accounting used to apportion costs in process costing, based on the stage of completion.
Ending Work In Process
The value of goods that are partially completed at the end of an accounting period, not yet ready for sale.
- Ascertain and interpret the equivalent units of production relevant to process costing.
Verified Answer
MF
Melody FrancisJun 07, 2024
Final Answer :
C
Explanation :
The process had 85000 completed and transferred out units and 50000 units in ending work in process inventory that were 30% complete. So, the equivalent units of production will be:
= Completed units + (Ending WIP * % Completion)
= 85000 + (50000 * 0.30)
= 100000
Therefore, the correct answer is C.
= Completed units + (Ending WIP * % Completion)
= 85000 + (50000 * 0.30)
= 100000
Therefore, the correct answer is C.
Learning Objectives
- Ascertain and interpret the equivalent units of production relevant to process costing.