If beginning inventory in Work in Process is zero and 2,000 units are started during the period,assuming that 300 units remain in ending inventory,how many equivalent units were completed and transferred out?
A)2,000 units.
B)285 units.
C)300 units.
D)1,700 units.

Question

Quizplus · Accepted Answer

Equivalent units are the units that are fully completed and those that are partially completed during the period. Since the beginning inventory is zero, all 2,000 units started during the period are partially completed. Therefore, the equivalent units will be calculated as follows:
Equivalent units= Units started and completed during the period + (Units started and partially completed during the period x % completion)
Equivalent units= 2,000 + (300 x 100%) = 2,300 units
Out of these equivalent units, 300 units remain in ending inventory, which means that 2,000 units were completed and transferred out during the period. Therefore, the correct answer is D, 1,700 units.

If Beginning Inventory in Work in Process Is Zero and 2,000