Question

RST Company uses a process cost system. The following data pertains to January.

Answer 1

Answer:

40,500 units

Explanation:

The computation of the total number of equivalent whole units produced in January is shown below

= Beginning work in process units + Units transferred + ending work in process units × completion percentage

where,

Units transferred is

= 40,000 units - 5,000 units

= 35,000 units

So, the equivalent units is

= 3,000 units + 35,000 units + 5,000 units × 50%

= 38,000 units + 2,500 units

= 40,500 units