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The following information relates to a process for June 20X5:
Opening work-in-progress (WIP)
Total completed output for June 20X5
Closing WIP
There were no losses during the process.
400 units (degree of completion 60%)
2,500 units
300 units (degree of completion 40%)
What are the equivalent units of production for June 20X5?
I calculated as 400×40%=160 300×40%= 120 so, 160+2500+120= 2780
Should owip percentage be taken as remaining like i calculated?You are correct to take the remaining 40% of the opening work-in-progress.
However although 2,500 units were completed, this includes the 400 units of opening WIP that were finished.
Therefore the total equivalent units is 160 + 2100 + 120 = 2380.
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