Acompany uses the weighted average method for inventory costing. at the beginning of a period the production department had 20,000 units in beginning work in process inventory which were 40% complete; the department completed and transferred 165,000 units.

at the end of the period, 22,000 units were in the ending work in process inventory and are 75% complete.

compute the number of equivalent units produced by the department.

select one:

a. 181,500.

b. 165,000.

c. 173,500.

d. 145,000.

e. 187,000.

c. 173,500.

Explanation:

If the department completed and transferred 165,000 units, it started and finished 145,000 new units in addition to completing the remaining 60% of the 20,000 unfinished units in the beginning of the period. Aside from that, it also produced 75% of 22,000 additional units.

Using the weighted average method for inventory costing, the number of equivalent units produced by the department is:

The department produced 173,500 units.

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