A company uses the weighted average method for inventory costing. During a period, Department A finished and transferred 50,000 units to Department B. Also, during the period, 10,000 units were started but brought only to a stage of being 3/5 completed. The number of equivalent units produced by Department A during the period was:
A) 44,000 units.
B) 50,000 units.
C) 54,000 units.
D) 56,000 units.
E) 60,000 units.

Question

Quizplus · Accepted Answer

The equivalent units are calculated as the units transferred out (50,000) plus the equivalent units in ending work in process (10,000 units * 3/5 completion = 6,000), totaling 56,000 equivalent units.

A Company Uses the Weighted Average Method for Inventory Costing