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25 May, 19:16

During the month of May, the grinding department produced and transferred out 2,300 units. EWIP had 500 units, 40% complete. There was no BWIP. The equivalent units of output for May are a. 2,000. b. 2,500. c. 2,300. d. 2,800. e. None of these.

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  1. 25 May, 22:00
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    Answer: B 2500

    Explanation:

    Equivalent units are calculated by multiplying the actual units completed at hand in addition to the percentage of completion units.

    Formula

    The number of partially completed units x percentage of completion = equivalent units of production

    Equivalent units for May

    Equivalent units=2300 + (0.4x500)

    Equivalent units=2300+200

    Equivalent units=2500
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