Frost,Inc.is a service firm that uses process costing.The firm worked on a total of 1,600 cases this month,800 of which were completed during the period.The remaining cases were 40% complete.The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period,and had $4,800 in direct labor and manufacturing costs in beginning inventory.Using the weighted average method,what was the total number of equivalent units?
A)800
B)1,120
C)1,440
D)1,600

Question

Quizplus · Accepted Answer

1,120 equivalent units are calculated by adding the fully completed cases (800) to the equivalent units for the partially completed cases (320, which is 40% of 800).

Frost,IncIs a Service Firm That Uses Process Costing