A process with no beginning work in process, completed and transferred out 60,000 units during a period and had 50,000 units in the ending work in process inventory that were 20% complete. The equivalent units of production for the period were: a. 70,000 equivalent units. b. 112,000 equivalent units. c. 100,000 equivalent units. d. 62,000 equivalent units.

The correct answer is:

70,000 equivalent unit (a.)

Explanation:

The following information were given:

completed and transferred inventory units = 60,000

ending work in process inventory units = 50,000

percentage completion of ending work in process inventory = 20%

∴ % of completed ending work in process inventory = 20% of ending work in process inventory

= 20% of 50,000

= 20/100 * 50,000 = 0.2 * 50,000 = 10,000 units

Finally, the total equivalent units of production for the period is calculated as: completed and transferred inventory units + % of completed ending work in process inventory

= 60,000 + 10,000 = 70,000 equivalent units.