A company uses the weighted average method for inventory costing.During a period,Department B finished and transferred 50,000 units to Department C.Also in Department B during the period,10,000 units were started but brought only to a stage of being 60% completed.The number of equivalent units produced by Department B during the period was:
A)44,000 units.
B)50,000 units.
C)54,000 units.
D)56,000 units.
E)60,000 units.

Question

Quizplus · Accepted Answer

Equivalent units are calculated by adding the units transferred out to the equivalent units in ending work in process. Here, 50,000 units were completed and transferred out, and 10,000 units were 60% complete, contributing 6,000 equivalent units (10,000 x 60%). Therefore, the total equivalent units are 50,000 + 6,000 = 56,000 units.

A Company Uses the Weighted Average Method for Inventory Costing