Spring Corporation's beginning work in process contained 12,000 units that were 20% complete. During the period Spring started production of 40,000 units and had 8,000 units in the ending work in process. How complete was the ending work in process assuming that Spring's equivalent units of production were 48,800 units?
A) 40%
B) 60%
C) 10%
D) 90%

Question

Quizplus · Accepted Answer

The equivalent units of production formula is: Beginning WIP + Units started - Ending WIP = Equivalent units. Here, 12,000 * 0.2 + 40,000 - 8,000 * x = 48,800. Solving for x gives 0.6 or 60%.

Spring Corporation's Beginning Work in Process Contained 12,000 Units That