If beginning inventory in Work in Process is zero,2,000 units are started during the period,and 300 units remain in ending inventory,how many equivalent units were completed and transferred out?
A)2,000 units
B)285 units
C)300 units
D)1,700 units

Question

Quizplus · Accepted Answer

Equivalent units are the amount of work done on a unit. Since beginning inventory in Work in Process is zero, we only need to calculate the equivalent units for the units started during the period. 
Equivalent units = Units started during the period - ending inventory
Equivalent units = 2,000 - 300
Equivalent units = 1,700 units were completed and transferred out. 
Therefore, the correct answer is D.

If Beginning Inventory in Work in Process Is Zero,2,000 Units