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22 March, 15:45

A company's beginning work in process inventory consisted of 20,000 units that were 1/5 complete with respect to direct labor. These beginning units were completed and another 90,000 units were started during the current period. Of those started, 60,000 were finished and the remaining 30,000 were one-third complete at the end of the period. Using the weighted-average method, the equivalent units of production were:A. 60,000B. 74,000C. 76,000D. 86,000E. 90,000

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  1. 22 March, 16:10
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    E. 90,000

    Explanation:

    beginning WIP 20,000

    start and complete 60,000

    transferred out 80,000

    ending WIP 30,000 x 1/3 = 10,000

    Equivalent units 80,000 + 10,000 = 90,000

    Equivalent units under WA method only relates to transferred-out units and the ending WIP

    It does not make the difference between beginning inventory and start and complete as FIFo does.
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