Question

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Equivalent units of production for the year are: Beginning inventory of Work in Process (40% complete, $1,100) 200 units Ending inventory of Work in Process (80% complete) 400 units Total units started during the year 3,200 units Select one:
a. 3,200 units.
b. 3,320 units.
c. 3,240 units.
d. 3,520 units.
e. 3,800 units.

Answer 1

Answer:

The correct answer is C. 3240 units.

Explanation:

The calculation of Equivalent units of production for the year is given below.

Add

Begining inventory               = 60% * 200         = 120 units

completed in this period

Units put in process                                         = 3200 units

Less

Un-complete closing         =  20% * 400       =  (80 units)

stock

Equivalent units                                           =    3240