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      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┬аto the next process, what is the equivalent production for the period?┬а
      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 ┬а

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