Question

Walnut Ltd. sells the best homemade pecan pie. At the start of the period they had no units in process and in finished goods inventory. During the period they started 86,000 units and transferred out 60,000 units. If equivalent units for the period totaled 80,000 then the units in process were what percent complete?

a) 75%
b) 76.9%
c) 32.5%
d) 33.3%
e) Not enough information provided

Answer 1

To determine the units in process and their percent completion, we can use the concept of equivalent units. If 60,000 units were transferred out and the total equivalent units for the period were 80,000, then the units in process were approximately 23.26% complete.

Step-by-step explanation:

To determine the units in process and their percent completion, we can use the concept of equivalent units. Equivalent units represent partially completed units, and they are calculated based on the amount of work done on each unit. In this case, the equivalent units for the period totaled 80,000.

If 60,000 units were transferred out, then the remaining 20,000 units must still be in process. To find the percent completion, we divide the number of equivalent units by the number of units started. The calculation would be 20,000 / 86,000 = 0.2326, or approximately 23.26% completion.

Therefore, the correct answer is option d) 33.3%.