Fraser Manufacturing had no work in process at the beginning of a month. It transferred 6,000 units to finished goods during the month, and 800 units were still in process at the end of the month. Equivalent production for the month was 6,480 units. At what stage of completion were the unfinished units at the end of the month?

Question

Quizplus · Accepted Answer

The equivalent units of production for the unfinished units can be calculated as (6,480 total equivalent units - 6,000 completed units) = 480 equivalent units. Since there are 800 unfinished units, the stage of completion is 480/800 = 0.60 or 60 percent.

Fraser Manufacturing Had No Work in Process at the Beginning