The production report for Phillips Industries, which had no beginning inventory at the beginning of the month, included the following information for September: If the equivalent units for September's production were 77,400, how many units were in process at the end of the month, and how complete were they?
A)9,000; 30%
B)9,000; 60%
C)3,000; 90%
D)6,000; 90%

Question

The production report for Phillips Industries, which had no beginning inventory at the beginning of the month, included the following information for September:  If the equivalent units for September's production were 77,400, how many units were in process at the end of the month, and how complete were they?
A)9,000; 30% 
B)9,000; 60% 
C)3,000; 90% 
D)6,000; 90%

Quizplus · Accepted Answer

11eb16ac_e012_3ec7_984d_ffac8e06b167_TB6154_00 If Phillips started 81,000 units during the month, and transferred 72,000 to finished goods, 9,000 units would be left in ending inventory. Further, if equivalent units of production are equal to 77,400, the equivalent units of ending Work in Process would be 5,400 (77,400 - 72,000).
5,400 / 9,000 = 60% The units in ending Work in Process are 60% complete.

The Production Report for Phillips Industries, Which Had No Beginning