The Mixing Department's output during the period consists of 20,000 units completed and transferred out, and 5,000 units in ending work in process 60% complete as to materials and conversion costs. Beginning inventory is 1,000 units, 40% complete as to materials and conversion costs. The equivalent units of production are_________________

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Answer:

23,000 units

Explanation:

The computation of the equivalent units of production are shown below:

= Number of units completed and transferred out + ending work in process units × completion percentage

= 20,000 units + 5,000 units × 60%

= 20,000 units + 3,000 units

= 23,000 units

We simply added the completed units and the ending work in process units

The equivalent units of production are 23,000 unit.

What is the Equivalent units of production?

= Number of units completed and transferred out + Ending work in process units * Completion percentage

= 20,000 units + 5,000 units × 60%

= 20,000 units + 3,000 units

= 23,000 units

In conclusion, the equivalent units of production are 23,000 unit.

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