Fraser Manufacturing had no work in process at the beginning of a month.It transferred 6,000 units to finished goods during the month,and 800 units were still in process at the end of the month.Equivalent production for the month was 6,480 units.At what stage of completion were the unfinished units at the end of the month?

Question

Quizplus · Accepted Answer

The equivalent units of production are calculated as the units transferred out plus the equivalent units in ending work in process. Here, 6,000 units were transferred out, and 480 equivalent units are in process (6,480 - 6,000). Since there are 800 units in process, the stage of completion is 480/800 = 60%.

Fraser Manufacturing Had No Work in Process at the Beginning