A company uses the weighted average method for inventory costing. During a period, Department B finished and transferred 62,000 units to Department C. Also in Department B during the period, 16,000 units were started but brought only to a stage of being 60% completed. The number of equivalent units produced by Department B during the period was:_____.a. 60,000 units.
b. 55,000 units.
c. 62,500 units.
d. 67,500 units.
e. 47,500 units.

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facundobuzzetti facundobuzzetti · Answer 1 · 2021-07-14T02:39:25+02:00

Answer:

Total Equivalent units of production= 71,600 units

Explanation:

The weighted average method blends the costs and units of the previous period with the costs and units of the current period.

Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production

Equivalent units of production:

Units completed in the period= 62,000

Equivalent units in ending inventory WIP= (16,000*0.6)= 9,600

Total Equivalent units of production= 71,600 units