Beginning work in process consists of 7,000 units, 55% complete. 50,000 units were started and ending work in process is 5,000 units, 25% complete. Normal spoilage is equal to 10% of the units inspected. The inspection point occurs at the 20% point and 7,000 units were rejected. Direct materials are added at the 50% point, direct labour at 30% and overhead is applied uniformly. The costs per equivalent unit are: direct material $1.00; direct labour $1.50; overhead $2.00.
The number of units completed is:
A) 45,000
B) 47,000
C) 50,000
D) 57,000

Question

Quizplus · Accepted Answer

To calculate the number of units completed, we start with the total units accounted for and subtract the ending work in process and the units rejected due to spoilage. The beginning work in process was 7,000 units, and 50,000 units were started during the period, making a total of 57,000 units accounted for. The ending work in process is 5,000 units, and 7,000 units were rejected due to spoilage. Therefore, the units completed are 57,000 - 5,000 - 7,000 = 45,000 units.

Beginning Work in Process Consists of 7,000 Units, 55% Complete