Question

During a period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were one-fifth complete with respect to direct labor at the beginning of the period and 30,000 were started and completed during the period. Also, during the period, 10,000 units were started but brought only to a stage of being three-fifths completed. Using the weighted-average inventory valuation method, the number of equivalent units of labor added by the end of the period was:A. 46,000 units.B. 50,000 units.C. 52,000 units.D. 54,000 units.E. 56,000 units.

Answer 1

E. 56,000

Step-by-step explanation:

complete and transferred 50,000

ending inventory 10,000 x 3/5 = 6,000

Equivalent units using weighted average: 56,000

Under W-A we calculate the equivalent units by the sum of transferred and ending WIP we do o difference between beginning units and started and complete. We work with trasnferred units only.

That's because later the cost are weighted.