Question

A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 54,000 units to Department C. Also in Department B during the period, 12,000 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 _________.

Answer 1

Answer:

Equivalent Units = 61,200

Explanation:

The transferred units, means they complete their process, so move out and count as 100%

The ending WIP will be compute for their completion percent.

54,000 Transferred out

12,000 x 60% 7,200 equivalent

Equivalent Units = 61,200