During August,Department Z started and completed 90,000 units and also finished 18,000 units that were 75% completed on July 31.On August 31,Department Z's ending inventory consisted of 26,000 units that were 45% completed.All manufacturing costs are incurred at a uniform rate throughout Department Z's production process.The number of equivalent units of production for Department Z during August is:
A)106,200.
B)90,000.
C)94,500.
D)117,800.

Question

Quizplus · Accepted Answer

Equivalent units of production = Units completed + (Ending inventory * % completion) + (Beginning inventory * % completion to finish). Here, it's = 90,000 + (26,000 * 45%) + (18,000 * 25%) = 90,000 + 11,700 + 4,500 = 106,200.

During August,Department Z Started and Completed 90,000 Units and Also