Question

If 16,000 units of materials enter production during the first year of operations, 12,000 of the units are finished, and 4,000 are 75% completed, the number of equivalent units of production would be 15,000.
True

False

Answer 1

Answer:

True

Explanation:

Equivalent Unit Production is solved in two ways. Either by adding beginning inventory and units started or by adding finished goods and ending inventory.

If we add finished goods and ending inventory we  get

Finished Goods  units      12000

Ending Inventory  units    4000(75%)= 3000

Equivalent Units         15000

which is true .