Question

A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 58,000 units to Department C. Also in Department B during the period, 14,000 units were started but brought only to a stage of being 60% completed. The number of equivalent units produced by Department B during the period was___________.A. 63,600 units.B. 66,400 units.C. 72,000 units.D. 58,000 units.E. 49,600 units.

Answer 1

Answer:

Option (B) is correct.

Explanation:

Given that,

During a period, Department B finished and transferred to Department C = 58,000 units

In Department B during the period units started = 14,000

Brought only to a stage of being 60% completed.

The number of equivalent units produced by Department B during the period was:

= Units finished and transferred from Department B to C + (Units were started in Department B × 60%)

=  58,000 units + (14,000 units × 60%)

= 58,000 units + 8,400 units

= 66,400 units