The following information concerns Transformation Inc.'s equivalent units in June: $\begin{array}{lr}\text { units }\
\text { Beginning Work-in-Process Inventory (50\% complete) } & 2,000 \
\text { Units started during June } & 10,900 \
\text { Units completed and transferred } & 10,000 \
\text { Ending Work-in-Process Inv entory (70\% complete) } & 2,900
\end{array}$ What are Transformation's equivalent units for June when using the weighted average costing method?
A) 10,000
B) 12,030
C) 12,900
D) 22,900

Question

Quizplus · Accepted Answer

Under the weighted average method, equivalent units are calculated by adding units completed and transferred out to the equivalent units in ending inventory. Here, 10,000 units were completed and transferred, and the ending inventory of 2,900 units is 70% complete, contributing 2,030 equivalent units (2,900 * 70%). Thus, the total equivalent units are 10,000 + 2,030 = 12,030.

The Following Information Concerns Transformation Inc What Are Transformation's Equivalent Units for June When Using the \begin{array}{lr}\text