Question

    If 8000 units are introduced in a process and normal loss is 5% of input, Closing WIP is 1000 units which is 60% complete and 6600 units are transferred to the next process, what is the equivalent production for the period? 

    A 6600 Correct Answer Incorrect Answer
    B 6800 Correct Answer Incorrect Answer
    C 7200 Correct Answer Incorrect Answer
    D 7600 Correct Answer Incorrect Answer
    E 8000 Correct Answer Incorrect Answer

    Solution

    Equivalent production of WIP 1000 units = 60% of 1000 units = 600 units Complete units transferred = 6600 units Total equivalent production for the period = 600+6600 = 7200 units  

    Practice Next