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.

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