Question

In RYZ company there are zero units in beginning work in process; 7,000 units started into production, and 500 units in ending work in process 20% completed. The physical unites to be accounted for are:

A. 7,000
B. 7,360
C. 7,500
D. 7,340

Answer 1

The correct total number of physical units to be accounted for in the RYZ company scenario is 7,100 units, which accounts for the 7,000 units started into production and 100 equivalent units for the 20% completed 500 units in ending work in process.

Step-by-step explanation:

The student is asking a question about the calculation of physical units in a production process for the RYZ company. In this scenario, there were zero units in the beginning, 7,000 units were started into production, and there are 500 units in ending work in process that are 20% completed. To find the physical units to be accounted for, we must consider both the number of units fully completed and those that are partially completed (the 20% completion of the 500 units).

To calculate the physical units:

1. Start with the total units started into production: 7,000 units
2. Add the equivalent units for the ending work in process inventory. Since the ending inventory is 20% complete, this equates to 500 units x 20%, which equals 100 equivalent full units.
3. Add the equivalent units to the units started to find the total physical units to be accounted for: 7,000 + 100 = 7,100 units.

Therefore, none of the options A (7,000), B (7,360), C (7,500), or D (7,340) are correct. The correct answer should be 7,100 physical units to be accounted for.