Question

During a period, Department A finished and transferred 60,000 units to Department B. Of the 60,000 units, 12,000 were one-fifth complete with respect to direct labor at the beginning of the period and 37,500 were started and completed during the period. Also, during the period, 12,500 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:

Answer 1

The equivalent units of labor added by the end of the period is 47,400 units.

Step-by-step explanation:

The number of equivalent units of labor added by the end of the period can be calculated using the weighted-average inventory valuation method. The formula to calculate the equivalent units is:

Equivalent Units = Units completed and transferred + (Units in process x % completion)

In this case, the units completed and transferred is 37,500 units. The units in process at one-fifth completion are 12,000 units, and the units in process at three-fifths completion are 12,500 units. So, the equivalent units of labor added by the end of the period is:

Equivalent Units = 37,500 + (12,000 x 1/5) + (12,500 x 3/5) = 37,500 + 2,400 + 7,500 = 47,400 units