A firm had no work in process at the beginning of a month. It transferred 4,000 units to finished goods during the month, and 500 units were still in process at the end of the month. Equivalent production for the month was 4,400 units. At what stage of completion were the unfinished units at the end of the month?

Question

Quizplus · Accepted Answer

The equivalent production of 4,400 units includes the 4,000 units completed and the 500 units still in process. To find the stage of completion for the unfinished units, we calculate the equivalent units for the unfinished goods (400 units) as a percentage of the unfinished units (500 units). This gives us 80% (400/500), indicating the unfinished units were 80% complete.

A Firm Had No Work in Process at the Beginning