During August, Department Z started and completed 90,000 units and also finished 18,000 units that were 75% completed on July 31. On August 31, Department Z's ending inventory consisted of 26,000 units that were 45% completed. All manufacturing costs are incurred at a uniform rate throughout Department Z's production process. The number of equivalent units of production for Department Z during August is:

Question

Business

Ramiro Peck

24 July, 05:23

During August, Department Z started and completed 90,000 units and also finished 18,000 units that were 75% completed on July 31. On August 31, Department Z's ending inventory consisted of 26,000 units that were 45% completed. All manufacturing costs are incurred at a uniform rate throughout Department Z's production process. The number of equivalent units of production for Department Z during August is:

+5

Answers (1)

Know the Answer?

Malachi Weber · Answer 1

106,200 units

Explanation:

During August,

Department Z started and completed = 90,000 units

Finished units = 18,000 units

Ending inventory = 26,000 units

The number of equivalent units of production for Department Z during August:

= Started and completed units + (25% of finished units) + (45% of Ending inventory)

= 90,000 + (18,000 * 0.25) + (26,000 * 0.45)

= 90,000 + 4,500 + 11,700

= 106,200 units