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MariettaO [177]
3 years ago
11

A process with no beginning work in process, completed and transferred out 85,000 units during a period and had 50,000 units in

the ending work in process inventory that were 30% complete. The equivalent units of production for the period were: a. 85,000 equivalent units. b. 135,000 equivalent units. c. 100,000 equivalent units. d. 70,000 equivalent units.
Business
1 answer:
serious [3.7K]3 years ago
6 0

Answer:

The correct answer is:

100,000 equivalent units (c.)

Explanation:

The equivalent units of production refers to all the units completely produced during the period, and this includes;

units completed and transferred out = 85,000 units

30% of ending work in process inventory = 30% of 50,000

= 30/100 × 50,000 = 0.3 × 50,000 = 15,000 units

∴ Equivalent units of production = (units completed and transferred out) + (30% of ending work in process inventory)

= 85,000 + 15,000 = 100,000 units.

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