Color Wheel has 3,500 gallons of paint in WIP inventory, with 75% of materials already added. What are equivalent units in ending WIP inventory for materials if the paint is 60% through the process?

Question

Quizplus · Accepted Answer

To determine the equivalent units in ending WIP inventory for materials, we need to consider the percentage of completion for materials. Since the paint is 60% through the process, we can assume that the materials in ending WIP inventory are also 60% complete.

Therefore, we can calculate the equivalent units for ending WIP inventory as follows:

Equivalent Units = WIP Inventory * % Complete

For materials, we have:

Equivalent Units for Materials = 3,500 gallons * 75% * 60% = 2,625

Therefore, the best choice is B, with equivalent units for materials in ending WIP inventory of 2,625.

Color Wheel Has 3,500 Gallons of Paint in WIP Inventory