The following information is available for the current year for Pike company.

If Pike Company uses the weighted average process costing method,what is the total equivalent completed units transferred out and in WIP Inventory?
A)166,000
B)190,000
C)166,600
D)142,000
E)None of the answer choices is correct.

Question

The following information is available for the current year for Pike company.

If Pike Company uses the weighted average process costing method,what is the total equivalent completed units transferred out and in WIP Inventory?
A)166,000 
B)190,000 
C)166,600 
D)142,000 
E)None of the answer choices is correct.

Quizplus · Accepted Answer

The total equivalent completed units transferred out and in WIP Inventory are calculated as follows:
Beginning WIP Inventory: 20,000 units 
Units started and completed during the current year: 160,000 units 
Total equivalent completed units: 160,000 + 20,000 = 180,000 units 
Ending WIP Inventory: 13,400 units 
Equivalent units in ending WIP: 6,000 x 80% = 4,800 units 
Total equivalent units: 180,000 + 4,800 = 184,800 units 
Therefore, the total equivalent completed units transferred out and in WIP Inventory is 184,800 - 18,200 (units in beginning WIP Inventory) = 166,600 units. So, the best choice is C.

The Following Information Is Available for the Current Year for Pike