The Winston Company began the period with no units in process and 80,000 units in Finished Goods Inventory.During the period they sold 280,000 units and also had the following at the end of the period: $\begin{array}{cc}
\text { Finished goods (units) } &40,000\
\text { Work in process ( $ 50 \% $ conversion complete) } &12,000\
\end{array}$ Equivalent units for the period totalled
A)314,000.
B)280,000.
C)240,000.
D)246,000.

Question

The Winston Company began the period with no units in process and 80,000 units in Finished Goods Inventory.During the period they sold 280,000 units and also had the following at the end of the period: $\begin{array}{cc}
  \text { Finished goods (units) } &40,000\
 \text { Work in process ( $ 50 \% $ conversion complete)  } &12,000\
\end{array}$ Equivalent units for the period totalled
A)314,000.
B)280,000.
C)240,000.
D)246,000.

Quizplus · Accepted Answer

The equivalent units for the period can be calculated by adding the units sold, the ending finished goods inventory, and the work in process (adjusted for the percentage of completion). Here, it's 280,000 (sold) + 40,000 (ending finished goods) + (12,000 * 50%) = 320,000 + 6,000 = 326,000. However, the beginning inventory must be subtracted since those units were not part of this period's production. Thus, 326,000 - 80,000 = 246,000 equivalent units.

The Winston Company Began the Period with No Units in Process