If the beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be ___________?

Correct answer: B. 2300 units

  • A. 1800 units
  • B. 2300 units
  • C. 10300 units
  • D. 1500 units

Explanation

Under the equivalent-unit flow equation, beginning WIP plus current-period work equals completed units plus ending WIP. Thus, ending WIP equals 2,500 + 3,800 - 4,000 = 2,300 units.

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Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.

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