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    Question

    If 28000 units are introduced in a process and normal

    loss is 5% of input, Closing WIP is 6000 units which is 40% complete and rest of the good units are transferred to the next process, what is the equivalent production for the period? 
    A 20600 Correct Answer Incorrect Answer
    B 23000 Correct Answer Incorrect Answer
    C 26600 Correct Answer Incorrect Answer
    D 22000 Correct Answer Incorrect Answer
    E 30200 Correct Answer Incorrect Answer

    Solution

    Equivalent production of WIP 6000 units = 40% of 6000 units = 2400 units Complete units transferred = 20600 units Total equivalent production for the period = 2400 units + 20600 units = 23000 units

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