A process with no beginning work in process, completed and transferred out 75,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were:
A) 75,000 equivalent units.
B) 125,000 equivalent units.
C) 90,000 equivalent units.
D) 37,500 equivalent units.

Question

Quizplus · Accepted Answer

To calculate the equivalent units of production, we need to consider the units that are completed and transferred out during the period, as well as the units that are still in process at the end of the period.

For the units that are completed and transferred out, we count them as fully complete. In this case, that would be 75,000 units.

For the units in the ending work in process inventory, we need to determine how much of the work has been completed. Since they are 30% complete, we count them as 30% of a full unit. So, the equivalent units would be 30% of 50,000, which is 15,000 units.

Adding the equivalent units for completed and transferred out (75,000) and the ending work in process (15,000) gives us a total of 90,000 equivalent units. Therefore, the correct answer is (C) 90,000 equivalent units.

A Process with No Beginning Work in Process, Completed and Transferred