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28 July, 08:08

RST Company uses a process cost system. The following data pertains to January.

Units

Beginning Work in Process 3,000

Started during the period 40,000

Ending Work in Process 5,000

ST Company uses a process cost system. The following data pertains to January. he ending Work in Process inventory is 50% complete. What is the total number of equivalent whole units produced in January

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  1. 28 July, 10:56
    0
    40,500 units

    Explanation:

    The computation of the total number of equivalent whole units produced in January is shown below

    = Beginning work in process units + Units transferred + ending work in process units * completion percentage

    where,

    Units transferred is

    = 40,000 units - 5,000 units

    = 35,000 units

    So, the equivalent units is

    = 3,000 units + 35,000 units + 5,000 units * 50%

    = 38,000 units + 2,500 units

    = 40,500 units
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