Question

Norma Company had 10,000 units in work in process at January 1 that were 50 percent complete. During January, 25,000 units were completed. At January 31, 6,000 units remained in work in process that were 80 percent complete. Using the average cost method, the equivalent units for January were:

a. 31,000.
b. 29,800.
c. 35,000.
d. 36,000.

Answer 1

the equivalent units for January were: b. 29,800.

Step-by-step explanation:

Equivalent units concept is the measurement of physical units of output in terms of their completion percentage on work done on them.

Calculation of equivalent units for January

Units were completed ( 25,000 units×100%) = 25,000

Units of ending work in process ( 6,000 units ×80%) = 4,800

Total = 29,800

Answer 2

b. 29,800.

Explanation:

Number of units out in January = 25,000 units completed during month + 80% of 6,000 units completed at month end

= 25,000 + 4,800

= 29,800