During a period, Department A finished and transferred 50,000 units to Departmen

Question

During a period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were 1/5 complete with respect to direct labor at the beginning of the period and 30,000 were started and completed during the period. Also, during the period, 10,000 units were started but brought only to a state of being 3/5 completed. Using the Weighted Average Inventory Valuation Method, the number of equivalent units of labor added by the end of the period was:

46,000 units
50,000 units
52,000 units
54,000 units
56,000 units

Explanation / Answer

Ans is 52,000 units (20,000 x 4/5) + 30,000 + (10,000 x 3/5) = 52,000

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