If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor,the equivalent units of direct labor in Work in Process are 20,000.

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Since the department starts the reporting period with 100,000 physical units that were 20% complete with respect to direct labor, the equivalent units of direct labor in Work in Process would be 20,000 (100,000 x 20%).

If a Department That Uses Process Costing Starts the Reporting