Perfect Pigments has 3,500 gallons of paint in WIP inventory, with 80% of materials already added. What are equivalent units in ending WIP inventory for materials if the paint is 50% through the process?

Question

Quizplus · Accepted Answer

Equivalent units for materials are calculated based on the percentage of completion for materials. Since 80% of materials are already added, the equivalent units for materials in ending WIP inventory are 80% of 3,500 gallons, which is 2,800 gallons.

Perfect Pigments Has 3,500 Gallons of Paint in WIP Inventory