Question

Department 1 completed and transferred out 450 units and had ending work in process inventory of 60 units. The ending inventory is 20% complete for materials and 60% complete for labor and overhead. The equivalent units of production for labor and overhead is ______ units.

Answer 1

Answer:

Equivalent units= 486 units

Explanation:

Giving the following information:

Units completed= 450

Ending work in process= 60 units

The ending inventory is 20% complete for materials and 60% complete for labor and overhead.

To calculate the equivalent units of production, we need to use the following formula:

Units started and completed = units completed - beginning WIP

Ending work in process completed= Ending WIP* %completed

=Number of equivalent units

Units started and completed = 450 - 0= 450

Ending work in process completed= 60*0.6= 36

= 486 units