A firm had 800 units in its work in process inventory at the beginning of a month. Of these units, 45 percent were complete with respect to labor, materials, and overhead. The firm transferred 5,700 units to the finished goods inventory during the month. It had 480 units which were 40 percent complete at the end of the month. Equivalent production for the month was

Question

Quizplus · Accepted Answer

Equivalent production = Units completed and transferred + Equivalent units in ending work in process inventory. Units completed and transferred = 5,700 units. Equivalent units in ending work in process inventory = 480 units * 40% = 192 units. Beginning work in process inventory = 800 units * 45% = 360 units. Equivalent production = 5,700 + 192 = 5,892 units.

A Firm Had 800 Units in Its Work in Process