In its initial year of operation,Montoya Manufacturing started and completed 4000 identical widgets and had 1000 widgets that were 40 per cent complete in work-in-process at the end of the year.Total production costs for the year were $55 000.How many total equivalent units were completed during the year?
A) 4600
B) 5000
C) 4000
D) 4400

Question

Quizplus · Accepted Answer

To calculate the total equivalent units, we need to add the completed units to the work-in-progress units. The completed units are 4000, and the work-in-progress units are 1000, but they are 40% completed, so they are equivalent to 400 units (1000 x 0.40). Therefore, the total equivalent units are 4000 + 400 = 4400. Therefore, the answer is D.

In Its Initial Year of Operation,Montoya Manufacturing Started and Completed