The Assembly Department is the second stage of Pine Company's production cycle.On May 1,the beginning work in process contained 15,000 units that were 40 percent complete.During May,85,000 units were transferred in from the first stage of Pine's production cycle.On May 31,the ending work in process contained 20,000 units that were 75 percent complete.Using the average cost method,the equivalent units of the Assembly Department are:
A)85,000 70,000 70,000
B)100,000 80,000 80,000
C)100,000 95,000 95,000
D)120,000 100,000 100,000

Question

The Assembly Department is the second stage of Pine Company's production cycle.On May 1,the beginning work in process contained 15,000 units that were 40 percent complete.During May,85,000 units were transferred in from the first stage of Pine's production cycle.On May 31,the ending work in process contained 20,000 units that were 75 percent complete.Using the average cost method,the equivalent units of the Assembly Department are: 
A)85,000 70,000 70,000 
B)100,000 80,000 80,000 
C)100,000 95,000 95,000 
D)120,000 100,000 100,000

Quizplus · Accepted Answer

To calculate the equivalent units of production for the Assembly Department, we need to consider both the units transferred in and the units still in process at the end of the period.

Step 1: Work in Process at the beginning
15,000 units × 40% complete = 6,000 equivalent units

Step 2: Units Transferred In
85,000 units = 85,000 equivalent units

Step 3: Work in Process at the end
20,000 units × 75% complete = 15,000 equivalent units

Step 4: Total equivalent units of production
6,000 + 85,000 + 15,000 = 106,000 equivalent units

Therefore, the best choice is C, which has 100,000 equivalent units for units transferred in and 95,000 equivalent units for the work in process at the end.

The Assembly Department Is the Second Stage of Pine Company's