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Sunny_sXe [5.5K]
4 years ago
6

A company's beginning work in process inventory consisted of 20,000 units that were 1/5 complete with respect to direct labor. T

hese beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were 1/3 complete at the end of the period.
a. 60,000.
b. 74,000.
c. 76,000.
d. 90,000.
e. 96,000.
Business
1 answer:
nikdorinn [45]4 years ago
6 0

Answer:

d. 90,000.

Explanation:

<em><u>Weighted average processing cost:</u></em>

completed during the period 80,000

complete portion of ending WIP

30,000 x 1/3 = 10,000

Total EU  90,000

<em><u>FIFO processing cost:</u></em>

  80,000 completed

+  10,000 ending WIP

<u><em>- 20,000</em></u><u> </u>x 1/5 previous production

 86,000

as only W/A equivalent untis is possible to pick that should be the answer.

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