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28 February, 19:21

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.

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Answers (1)
  1. 28 February, 20:53
    0
    Equivalent units of production for the year will be 3320

    So option (b) will be correct answer

    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
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