What are the equivalent units for the month of July if the company uses the weighted-average method?

Question

Quizplus · Accepted Answer

According to the data given in the question, the equivalent units for July can be calculated using the weighted-average method by adding the work done in July with the work that was already completed and in process from the previous month (June). 
The total units that were started in June (10,000 units) plus the units that were started and completed in July (30,000 units) equals 40,000 units. 
However, not all of these 40,000 units are fully completed, so we need to take into consideration the percentage of completion of the remaining units in July. In the question, it is mentioned that 40% of the units were 100% complete and 60% of the units were 50% complete, which in total represents 70% (40% + 60% * 50%) completion. 
Therefore, the equivalent units for July using the weighted-average method would be 40,000 units * 70% = 28,000 units, which corresponds to Option C.

What Are the Equivalent Units for the Month of July