Question

During August, Department Z started and completed 90,000 units and also finished 18,000 units that were 75% completed on July 31. On August 31, Department Z's ending inventory consisted of 26,000 units that were 45% completed. All manufacturing costs are incurred at a uniform rate throughout Department Z's production process. The number of equivalent units of production for Department Z during August is:

Answer 1

Answer:

106,200 units

Explanation:

During August,

Department Z started and completed = 90,000 units

Finished units = 18,000 units

Ending inventory = 26,000 units

The number of equivalent units of production for Department Z during August:

= Started and completed units + (25% of finished units) + (45% of Ending inventory)

= 90,000 + (18,000 × 0.25) + (26,000 × 0.45)

= 90,000 + 4,500 + 11,700

= 106,200 units