Mathews Company uses the weighted average process costing method.The company had no units in beginning WIP Inventory.Mathews has calculated that 45,000 total equivalent units were completed during the year.If 53,000 units were started in the current period and 10,000 units were in ending WIP Inventory,what percentage of completion existed in the ending inventory units?
A)20%
B)22%
C)56%
D)81%
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

The equivalent units completed (45,000) plus the equivalent units in ending WIP (10,000) should equal the units started (53,000). Therefore, the ending WIP units must be 10,000 - 8,000 = 2,000 equivalent units. The percentage of completion is 2,000/10,000 = 20%.

Mathews Company Uses the Weighted Average Process Costing Method