The following information is available for the current year for Pike company.
$\begin{array}{ll}
\text { Number of units in beginning WIP Inventory } & 12,000 \quad \text { (30\% complete) } \
\text { Number of units started in the current period } & 160,000 \
\text { Number of units in the ending WIP Inventory } & 18,000 \quad \text { (70\% complete) }
\end{array}$
If Pike Company uses the weighted average process costing method,what is the total equivalent completed units transferred out and in WIP Inventory?

Question

Quizplus · Accepted Answer

To calculate the equivalent completed units, we need to add together the units completed during the period with the equivalent units in ending work in process (WIP) inventory. From the information given, we know that 150,000 units were started and there were 15,000 units in ending WIP inventory that were 60% complete.

150,000 units started 
+ (15,000 units in ending WIP inventory x 60% complete) 
= 150,000 + 9,000 
= 159,000 total equivalent completed units

However, the question asks for both units transferred out and in WIP inventory, so we need to subtract the units in ending WIP inventory from the total equivalent completed units:

159,000 total equivalent completed units 
- 15,400 units in ending WIP inventory 
= 166,600 units transferred out or in WIP inventory.

Therefore, the answer is C (166,600).

The Following Information Is Available for the Current Year for Pike