Department X of a manufacturing company works on only one product, and all costs are incurred uniformly as the product goes along the assembly line. The 8,000 units in process on December 1 were 60% completed. An additional 50,000 units were placed in production during December. At December 31, the 10,000 units in process were 60% completed. The equivalent full units of production during December amounted to:

Question

Quizplus · Accepted Answer

Equivalent units of production = (Units in beginning work in process x % completed in beginning work in process) + Units started and completed during the period + (Units in ending work in process x % completed in ending work in process)= (8,000 x 60%) + 50,000 + (10,000 x 60%)= 4,800 + 50,000 + 6,000= 49,200

Department X of a Manufacturing Company Works on Only One