A company\'s January 1 goods in process inventory contained 30,000 units that we

Question

A company's January 1 goods in process inventory contained 30,000 units that were 25% complete with respect to direct labor. The beginning inventory was completed this year and another 120,000 units were started. Of those started, 80,000 were finished and the remaining 40,000 were left 20% complete. Calculate the equivalent units of production for the year using the weighted average method. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

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Explanation / Answer

I could be wrong but I think it would go like this since you're completing the inventory.

30,000 at 25% complete = 7,500 complete with 22,500 to complete this year.

80,000 completed of the 120,000 = 80,000
The remaining 40,000 at 20% complete = 8,000
EUP would be 22,500 + 80,000 + 8,000 = 110,500

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