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) 50,000 units.
B) 56,000 units.
C) 54,000 units.
D) 60,000 units.
E) 44,000 units.

Question

Quizplus · Accepted Answer

The equivalent units are calculated by adding the fully completed units (50,000) to the partially completed units (10,000 * 60% = 6,000), resulting in 56,000 equivalent units.

A Company Uses the Weighted Average Method for Inventory Costing