Question

During May, Kimbrell Manufacturing completed and transferred out 100,000 units. In EWIP, there were 25,000 units. What is the equivalent units of production for the month?

1) 75,000 units
2) 100,000 units
3) 125,000 units
4) 150,000 units

Answer 1

The equivalent units of production for Kimbrell Manufacturing during May are 125,000 units when assuming that the ending work in process (EWIP) is 100% complete.

Step-by-step explanation:

The student's question pertains to the concept of equivalent units of production in cost accounting, specifically within the context of process costing. To determine the equivalent units of production, one must consider both the units completed and transferred out as well as the units in the ending work in process (EWIP), adjusted for their stage of completion. However, as the question does not specify the percentage of completion for the EWIP, it is assumed that the EWIP is 100% complete for the sake of calculating equivalent units.

Therefore, the equivalent units of production for the month would be the sum of the units completed and transferred out (100,000 units) plus the total units in EWIP (25,000 units), resulting in 125,000 equivalent units for the month.