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 unitsEnding inventory of Work in Process (80% complete) 400 unitsTotal units started during the year 3,200 units3,200 units.3,320 units.3,240 units.3,520 units.3,800 units.

Answer 1

Answer:

3320 units

Explanation:

Calculation of units transferred during the year:

=  Opening Stock + Total units started during the year - Ending inventory

= 200 + 3200 - 400

= 3000 units

Equivalent units of production for the year:

= Units transferred + (Closing WIP × % of completion )

= 3000 + (400 × 80% )

= 3320 units

Therefore, 3320 units is the correct answer.