Suppose Smith started 100,000 units during the period, transfers 75,000 units to finished goods and estimates that 25,000 units still in process are only 20 percent complete.What is the number of equivalent units in WIP inventory at the end of the period?
A)20,000
B)5,000
C)15,000
D)60,000
E)80,000

Question

Quizplus · Accepted Answer

The number of equivalent units in WIP inventory at the end of the period is calculated by taking the units still in process (25,000 units) and multiplying by their percentage of completion (20 percent), which equals 5,000 equivalent units.

Suppose Smith Started 100,000 Units During the Period, Transfers 75,000