Jet Products had no units in process at the beginning of the year. Jet uses process costing and has calculated 47,000 total equivalent units completed during the year. If there were 53,000 units started in the current period and 10,000 units in ending work-in-process, what percentage complete were the ending inventory units?
A) 50%
B) 60%
C) 40%
D) 22%

Question

Quizplus · Accepted Answer

The total equivalent units completed during the year were 47,000, and there were 53,000 units started in the current period, so the total units accounted for is 100,000 (47,000 + 53,000). If there were 10,000 units in ending work-in-process, then the percentage of completion can be calculated as follows:

10,000 / 47,000 = 0.2128

Therefore, the ending inventory units were approximately 21.28% complete, which is closest to 40% (C).

Jet Products Had No Units in Process at the Beginning