Question

During the month of May, the grinding department produced and transferred out 2,300 units. EWIP had 500 units, 40% complete. There was no BWIP. The equivalent units of output for May are a.2,000. b.2,500. c.2,300. d.2,800. e.None of these.

Answer 1

Answer: B 2500

Step-by-step explanation:

Equivalent units are calculated by multiplying the actual units completed at hand in addition to the percentage of completion units.

Formula

The number of partially completed units x percentage of completion = equivalent units of production

Equivalent units for May

Equivalent units=2300+(0.4x500)

Equivalent units=2300+200

Equivalent units=2500