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

Question

Quizplus · Accepted Answer

To calculate the number of equivalent whole units in the ending work in process inventory, we need to first determine the number of units that are fully completed and the number of units that are partially completed. Since the ending inventory is estimated to be 70% complete, we can multiply the ending inventory by 0.7 to get the number of equivalent whole units.

Number of units fully completed = 15,000 x 0.7 = 10,500 
Number of equivalent whole units in ending work in process inventory = 10,500. Therefore, the correct answer is C.

Steele Manufacturing Company Reported the Following Work in Process Inventory