Question

Metaline Corp. uses the weighted average method for inventory costs and had the following information available for the year. Equivalent units of production for the year are:

Beginning inventory of Work in Process (40% complete, $1,100) 200 units
Ending inventory of Work in Process (80% complete) 400 units
Total units started during the year 3,200 units

A. 3,200 units.
B. 3,320 units.
C. 3,240 units.
D. 3,520 units.
E. 3,800 units.

Answer 1

Equivalent units of production for the year will be 3320

So option (b) will be correct answer

Step-by-step explanation:

We have given beginning inventory = 200 units

Total unit started during the year = 3200 units

Ending inventory = 400 units

Calculation of units transferred during the year = Beginning inventory + Total units started during the year - Ending inventory

= 200 + 3200 - 400

= 3000 units

Calculation of Equivalent units of production for the year = Unit transferred + closing inventory × percentage of completion = 3000 + 0.8 ×400 = 3000 + 320 = 3320 units

So option (b) will be correct answer