Final answer:
To calculate the equivalent units of production, sum the completed and transferred out units and the percentage-complete portion of the ending work in process inventory. In this case, it is 95,000 units plus 30% of 50,000 units, resulting in 110,000 equivalent units of production.
Step-by-step explanation:
The question refers to the calculation of the equivalent units of production for a company's manufacturing process over a certain period. To find the equivalent units of production, you need to account for both the units completed and transferred out as well as the units still in process at the end of the period. Since there were no beginning work in process units, the calculation is based solely on the activity within the period.
The completed and transferred out number is 95,000 units, which are 100% complete. For the ending work in process inventory, there are 50,000 units that are only 30% complete. The formula to calculate equivalent units of production in this scenario is:
Equivalent Units = (Units completed and transferred out) + (Ending work in process inventory * Percentage of completion).
Using this formula, the equivalent units of production is calculated as follows:
- 95,000 (completed and transferred out) + (50,000 * 30% (percent complete of ending work in process))
- 95,000 + 15,000 (50,000 * 0.30)
- 95,000 + 15,000 = 110,000 equivalent units of production.