Steele Manufacturing Company reported the following Work in Process Inventory account activity measured in units.The ending inventory was estimated to be 70% complete. Beginning inventory 20,000
Started 90,000
Ending inventory 15,000
What is the number of equivalent units in Steele's ending work in process inventory?
A) 14,000
B) 15,000
C) 10,500
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

The equivalent units are calculated as the units completed and transferred out, plus the equivalent units in ending work in process inventory.

Units completed and transferred out = Beginning inventory + Units started - Ending inventory 
Units completed and transferred out = 20,000 + 90,000 - 15,000 
Units completed and transferred out = 95,000

Equivalent units in ending work in process inventory = Ending inventory x % complete 
Equivalent units in ending work in process inventory = 15,000 x 70% 
Equivalent units in ending work in process inventory = 10,500

Total equivalent units = Units completed and transferred out + Equivalent units in ending work in process inventory 
Total equivalent units = 95,000 + 10,500 
Total equivalent units = 105,500

Therefore, the number of equivalent units in Steele's ending work in process inventory is 10,500 units.

Steele Manufacturing Company Reported the Following Work in Process Inventory