The equivalent units for labor and overhead for the month is:
A)17,600 units
B)18,500 units
C)19,700 units
D)21,600 units

Question

Quizplus · Accepted Answer

Equivalent units for labor = Units completed and transferred out + Equivalent units in ending WIP inventory = 16,000 + (4,000 x 60%) = 18,400 units
Equivalent units for overhead = Units completed and transferred out + Equivalent units in ending WIP inventory = 16,000 + (4,000 x 90%) = 19,700 units. Therefore, the best choice is C.

The Equivalent Units for Labor and Overhead for the Month