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28 April, 03:07

A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 50,000 units to Department C. Also in Department B during the period, 10,000 units were started but brought only to a stage of being 60% completed. The number of equivalent units produced by Department B during the period was:A) 44,000 units.

B) 50,000 units.

C) 54,000 units.

D) 56,000 units.

E) 60,000 units.

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Answers (1)
  1. 28 April, 03:12
    0
    Option (D) is correct.

    Explanation:

    Given that,

    Department B finished and transferred to Department C = 50,000 units

    Units started in Department B = 10,000

    60% completed

    Total units produced during period:

    = Number of units produced and transferred + Equivalent number of units for 60 percentage completed

    = 50,000 units + (10% * 6,000 units)

    = 50,000 units + 6,000 units

    = 56,000 units

    Therefore, the number of equivalent units produced by Department B during the period was 56,000 units.
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