Question

A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 50,000 units to Department C. Also in Department B during the period, 10,000 units were started but brought only to a stage of being 60% completed. The number of equivalent units produced by Department B during the period was:A) 44,000 units.

B) 50,000 units.
C) 54,000 units.
D) 56,000 units.
E) 60,000 units.

Answer 1

Option (D) is correct.

Step-by-step explanation:

Given that,

Department B finished and transferred to Department C = 50,000 units

Units started in Department B = 10,000

60% completed

Total units produced during period:

= Number of units produced and transferred + Equivalent number of units for 60 percentage completed

= 50,000 units + (10% × 6,000 units)

= 50,000 units + 6,000 units

= 56,000 units

Therefore, the number of equivalent units produced by Department B during the period was 56,000 units.