If a firm has 1,200 completed and transferred out units, 200 equivalent units of beginning work in process and 500 ending work-in-process equivalent units, what is the total of equivalent units of production using the weighted-average method?
A)1,500 units.
B)1,700 units.
C)1,200 units.
D)Cannot be determined from the above.

Question

Quizplus · Accepted Answer

The equivalent units of production for a process are calculated by adding the units completed and transferred out to the equivalent units of the work-in-process inventory. In this case, the calculation would be:
Equivalent units of production = Units completed and transferred out + Equivalent units of ending work-in-process
Equivalent units of production = 1,200 + 500 = 1,700
Therefore, the answer is B.

If a Firm Has 1,200 Completed and Transferred Out Units