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 units of production during December amounted to:
A)49,200.
B)60,800.
C)57,200.
D)58,800.

Question

Quizplus · Accepted Answer

Equivalent units of production = (Units in beginning WIP x % complete) + Units started and completed + (Units in ending WIP x % complete)= (8,000 x 60%) + 50,000 + (10,000 x 60%)= 4,800 + 50,000 + 6,000= 60,800

Department X of a Manufacturing Company Works on Only One