Answer:
use a pre-interview quiz
Explanation:
In order to save the time and effort of both the candidates and the organization the company should conduct the quiz before eligible for the interview so that the company could get to know the knowledge and skills of the candidates whether they are fit for the organization or not
Therefore the above represent the answer
On January 1, 2019, Castle Services issued $167,000 of six-year, 12% bonds when the market interest rate was 1 1 %. The bonds were issued for $180,000. Caste uses the effective-interest method to amortize the bond premium. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Round your answers to the nearest dollar number.)
A. Interest Expense 9,185 Cash 9.185
B. Interest Expense 9,900 120 Premium on Bonds Payable Cash 10,020
C. Interest Expense 9,185 835 Discount on Bonds Payable Cash 10,020
D. Cash 10,020 835 9.185 Premium on Bonds Payable Interest Expense
Answer:
B. Interest Expense 9,900 120 Premium on Bonds Payable Cash 10,020
Explanation:
Based on the information given the correct journal entry to record the first interest payment will be:
Dr Interest Expense 9,900
($180,000 × 11% × 6/12 = $9900)
Dr Premium on Bonds Payable120
(10,020-9,900)
Cr Cash 10,020
($167,000 × 12% × 6/12 = 10,020)
(Being to record first interest payment)
As the video showed, there are many people who are so concerned about the viability of banks, and indeed the entire financial system, that they are buying gold and silver coins instead of trusting their money to banks. However, the government provides protection from having bank accounts wiped out as they were during the Great Depression. The _____________ is an independent agency of the U.S. government that insures bank deposits (up to $250,000).
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales will be uncollectible. On January 1, theAllowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000.There were no sales returns or sales discounts during the year. After the adjusting entry, the December 31, balance in the Bad Debt Expense will be:________.
a. $1,200
b. $3,000
c. $3,600
d. $7,200
Answer:
b. $3,000
Explanation:
According to the above information, the following data are given
Credit sales = $100,000
Uncollectible percentage = 3%
So, after the adjustment by using allowance method, Bad debt expense can be calculated as;
Bad debt expense = Credit sales × Uncollectible percentage
= $100,000 × 3%
= $3,000
A $25,000 bank loan is to be repaid in equal yearly payments of $2745 over 15 yr at an effective annual interest rate of 7%. The borrower uses the loan money to earn an annual effective return of 10% in the stock market. All money earned is kept in the stock fund. What is most nearly the present-day value of the earnings over 15 yr as a result of this loan and investment venture
Answer:
The present-day value of the earnings over 15 years as a result of this loan and investment venture is:
= $24,998.51.
Explanation:
a) Bank loan = $25,000
Annuity Payment = $2,745 yearly
Period of loan = 15 years
Effective annual interest rate = 7%
Effective annual return = 10%
Future value of $25,000 at 10% for 15 years = $25,000 * 4.1777
= $104,425
The present-day value of $104,425 over 15 years at 10% effective annual return, using an online financial calculator =
N (# of periods) = 15 years
I/Y (Interest per year) = 10 years
PMT (Periodic Payment) = 0
FV (Future Value) = $104,425
Results
PV = $24,998.51
Total Interest $79,426.49
Finley Corporation had income from continuing operations of $10,600,000 in 2014. During 2014, it disposed of its restaurant division at an after-tax loss of $189,000. Prior to disposal, the division operated at a loss of $315,000 (net of tax) in 2014. Finley had 10,000,000 shares of common stock outstanding during 2014. Prepare a partial income statement for Finley beginning with income from continuing operations.
Answer:
The answer is "$1.01"
Explanation:
Revenue from operations $10,600,000
Operations discontinued
Loss of discontinued operation
Division of restaurant (net of tax)
$315,000
Loss of diner disposal
division (net of tax)
189,000
504,000
$10,096,000 in net income
Start sharing income
Revenue from operations $1.06
Net of tax (0.05)* Discontinued transactions
$1.01 Net Revenue
Elisa and Clyde operate a retail sports memorabilia shop. For the current year, sales revenue is $55,000 and expenses are as follows:
Cost of goods sold $21,000
Advertising 1,000
Utilities 2,000
Rent 4,500
Insurance 1,500
Wages to Boyd 8,000
Elisa and Clyde pay $8,000 in wages to Boyd, a part-time employee. Because this amount is $1,000 below the minimum wage, Boyd threatens to file a complaint with the appropriate Federal agency. Although Elisa and Clyde pay no attention to Boyd's threat, Chelsie (Elisas mother) gives Boy a check for $1,000 for the disputed wages. The retail shop is the only source of income for Elisa and Clyde.
Required:
a. Calculate Elisa and Clyde's AGI.
b. Can Chelsie deduct the $1,000 payment on her tax return?
Answer:
A. AGI $17,000
B. Chelsie cannot deduct the $1,000 payment on her tax return reason been that Chelsie is not in anyway entitled to a tax return deduction.
Explanation:
a. Calculation for Elisa and Clyde's AGI.
Sales revenue $55,000
Less Cost of goods sold ($21,000)
Advertising ($1,000)
Utilities ($2,000)
Rent ($4,500)
Insurance ($1,500)
Wages to Boyd ($8,000)
AGI $17,000
Based on the above calculation Elisa and Clyde can deduct the amount of $8,000 from the wages amount they paid to Boyd and secondly both Elisa and Clyde cannot deduct the amount of $1,000 that was paid by Chelsie.
b. Chelsie cannot deduct the amount of $1,000 which is the payment on her tax return reason been that Chelsie is not in anyway entitled to a tax return deduction.
An organization expresses its reason for being, what it aspires to be, and the values it wants to emphasize in its mission, vision, and values statements, respectively. This activity is important because these three statements are the necessary foundation for a successful organizational planning process. Read the descriptions and select whether the description pertains to a mission, vision, or value statement.
a. Describes the image the organization wants to project
b. Inspires enthusiasm and encourages commitment
c. Illuminates the organization’s attitude toward its employees
d. Is intended to guide all of the actions in the organization
Answer:
Explanation:
Each one of these are aspects of a company that each demonstrate something different of the company. A compan's mission is basically its ethics, cultures, and values. A company's vision is where they see themselves in the future in terms of the company they want to become. A company's value statement is it's core beliefs and priorities. That being said the following statements would be classified as follows...
a. Describes the image the organization wants to project - Vision
b. Inspires enthusiasm and encourages commitment - Vision
c. Illuminates the organization’s attitude toward its employees - Mission
d. Is intended to guide all of the actions in the organization - Value Statement
Optimization in Daily Life: Think about your favorite activity, hobbies or any kind of activity from your daily life. Find a problem which can be modeled with optimization. Now, think about the formulation steps for this activity using optimization and answer the formulation step questions below. (Note that you do not need to write a mathematical model.)
1. What is the decision to make?
2. What is the objective criterion?
3. What are the constraints for the decision?
Answer:
I like to go to learn driving everyday. I love driving car and go to mountains. I have a dream to have my own car and then go for long drives near the sea coast.
Explanation:
1. The decision to make is to buy a car to fulfill the hobby.
2. The main objective is to enjoy the favorite activity and pleased by the beauty of mountains and sea.
3. The main constraints are financial constraint. Money is required to buy a car and then fulfill the dream.
Functions of money and barterConsider an economy in which money does not exist, so that agents rely on barter to carry out transactions. When the economy was small, barter seemed sufficient. However, the economy has now begun to grow.If people in this economy trade three goods, the price tag of each good must list ______________?prices, and the economy requires____________?prices for people to carry out transactions.Suppose that the number of goods people trade increases to 15. Then the price tag of each good must list _________?prices, and the number of prices that the economy requires increases to____________?Now suppose that our economy has a money. The government now issues a national currency and there is no longer any barter.In this economy, money and currency are not the same because:1. The fact that the government issues currency means that the currency will be accepted as money by all agents.2. The fact that the currency is backed by the government means that it will never lose value and will remain a perfect unit of account.3. Just because the government issues currency does not mean that the currency will be accepted as money, since it must be used as a medium of exchange, store of value and standard of value.4. Just because the government issues currency does not mean that the currency will be accepted as money, and buyers and sellers still need barter to ensure that money does not lose its value.Suppose now that our economy is suffering from rapid, ongoing increases in the cost of living. Which characteristic of money is directly negatively impacted in that economy?1. Medium of exchange2. Double coincidence of wants3. Store of value4. Unit of account
Answer:
Money and Barter System
a. 9 prices
b. 9 prices
c. 225 prices
d. 225
e. 2. The fact that the government issues currency means that the currency will be accepted as money by all agents.
f. The characteristic or quality of money that is directly negatively impacted in that economy by the rapid, ongoing increases in the cost of living is the:
3. Store of value.
Explanation:
Before the governments started to mint money or currency, the barter system was the system of exchanging goods and services between two people. The barter system relied on the exchange of goods and services that were required by one person if she could find another person who possessed the goods or services and was willing to accept or actually needed the goods or services that the first person had. The exchange system was complicated, involving the location of the other party in the barter transaction.
discuss three types of elasticity of demand with various exa
mples
Answer:
Perfectly Elastic Demand
Perfectly Inelastic Demand
Relatively Elastic Demand
Relatively Inelastic Demand
Explanation:
Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within 30 days but can be returned for a full refund credit within 90 days. In 2014, Thomas shipped and billed book titles totaling $660,000. Collections, net of return credits, during the year totaled $605,934. he company spent $255,453 acquiring the books that it shipped a. Using accrual accounting and the preceding values, show the firm's net profit for the past year b. Using cash accounting and the preceding values, show the firm's net cash flow for the past year c. Which of these statements is more useful to the financil manager? Why?
Answer:
The following summarizes the solution to the given problem.
Explanation:
The given values are:
Sales,
= $660,000
Expenses,
= $255,453
Received cash revenues,
= $605,934
(a)
According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.
⇒ [tex]Net \ income=Sales-Expense[/tex]
On substituting the given values, we get
⇒ [tex]=660,000-255,453[/tex]
⇒ [tex]=404,547[/tex] ($)
(b)
⇒ [tex]Net \ Income =Received \ cash \ revenues-Expenses[/tex]
On substituting the given values, we get
⇒ [tex]=605,934-255,453[/tex]
⇒ [tex]=350,481[/tex] ($)
(c)
The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status. It accepts the profits throughout a similar time frame.Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided not to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the
Answer:
combined target market approach
Explanation:
When a company engages in a combined target market approach, it segregates potential markets into pairs or small groups which share similarities and then offers their products or services to them. The marketing mix will be similar for all the small segments that are within the larger group.
Suppose that Econistan produces two goods, marshmallows and toothpicks, under conditions of constant opportunity costs. Given its resources, the maximum number of marshmallows that it can make is 1000 pounds, and the opportunity cost of making one additional box of toothpicks is 4 pounds of marshmallows. a) (5 points) What is the maximum amount of toothpicks that Econistan can produce
Answer:
maximum number of toothpicks to be produced = 250
Explanation:
given data
maximum number of marshmallows = 1000 pounds
opportunity cost = 4 pounds
solution
we get here max no of toothpick that is express as
max no of toothpick = maximum number of marshmallows ÷ opportunity cost one toothpicks .......................1
put here value
max no of toothpick = [tex]\frac{1000}{4}[/tex]
max no of toothpick = 250
maximum number of toothpicks to be produced = 250
These are the agents of the
organization.
A. Board of Directors
B. Bondholders
C. Managers
D. Managers
Answer:
bondholder I think it is the correct one
Answer:
It is correct but remove the D. Managers
The May bank statement for Consulting Services shows a balance of $7,200, but the balance per books shows a cash balance of $9,100. Other information includes
Sheridan Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $31,448 at the beginning of each year. The first payment is received on January 1, 2020. Sheridan had purchased the machine during 2016 for $116,000. Collectibility of lease payments by Sheridan is probable. Sheridan set the annual rental to ensure a 6% rate of return. The machine has an economic life of 10 years with no residual value and reverts to Sheridan at the termination of the lease.
1. Compute the amount of the lease receivable.
2. Prepare all necessary journal entries for Sheridan for 2020.
3. Suppose the collectibility of the lease payments was not probable for Sheridan. Prepare the necessary journal entry for the company in 2020.
4. Suppose at the end of the lease term, Sheridan receives the asset and determines that it actually has a fair value of $980 instead of the anticipated residual value of $0. Record the entry to recognize the receipt of the asset for Sheridan at the end of the lease term.
Answer:
1. $ 207,003.32
2. Dec 1 2020
Dr Lease Receivable $ 207,003.32
Dr Cost of good sold $116,000
Dr Sales $ 207,003.32
Cr Inventory $ 116,000.00
Dr Cash $31,448
Cr Lease Receivable $31,448
Dec 31 2020
Dr Interest Receivable $10,533.32
Cr Interest Revenue $10,533.32
3. Dr Cash $31,448
Cr Deposit Liability $31,448
4. Dr Inventory 980
Cr Gain on lease (Residual value) 980
Explanation:
1 Computation for the amount of the lease receivable
Annual Payments $31,448
x PVAD (6%,8 years ) $6.5824
Amount of lease receivables $ 207,003.32
($31,448*$6.5824)
Therefore the amount of the lease receivable will be $ 207,003.32
2. Preparation of all necessary journal entries for Sheridan for 2020.
Dec 1 2020
Dr Lease Receivable $ 207,003.32
Dr Cost of good sold $116,000
Dr Sales $ 207,003.32
Cr Inventory $ 116,000.00
(Being to record Lease Receivable)
Dr Cash $31,448
Cr Lease Receivable $31,448
(Being to record first lease Receivable)
Dec 31 2020
Dr Interest Receivable $10,533.32
[ ($ 207,003.32 - $31,448 ) x 6%]
Cr Interest Revenue $10,533.32
3. Preparation of the necessary journal entry for the company in 2020.
Dr Cash $31,448
Cr Deposit Liability $31,448
4. Preparation of the entry to recognize the receipt of the asset for Sheridan at the end of the lease term.
Dr Inventory 980
Cr Gain on lease (Residual value) 980
This model shows how cold winter air is warmed in the Great Lakes Basin, which creates ideal temperatures for year-round fruit farming. Which statement best describes this interaction? A) The biosphere and hydrosphere interact, which affects the atmosphere. B) The geosphere and atmosphere interact, which affects the hydrosphere. C) The hydrosphere and atmosphere interact, which affects the biosphere. D) The geosphere and hydrosphere interact, which affects the atmosphere.
Answer:
Can I Know Where Is The Model Brother Please
Scenario:
B. Paul and his wife are investigating the possibility of starting a new restaurant in Beaufort, a small town in the South Carolina low country. It has been Paul's lifelong dream. Paul has won a lottery and is trying to decide if this is what he wants to do with the prize money. He decides to do an analysis of the competitive environment. After his analysis, he discovers several important issues. First, it will cost most of Paul's lottery winnings to finance a restaurant in Beaufort. Second, it will be difficult to attract new customers because they have so many eating choices available to them in Beaufort and the surrounding towns. Finally, the competition in the restaurant industry is considered fierce by industry analysts and this is frightening to someone like Paul, who has never worked in that industry. Which of the following factors would Paul have considered while analyzing the competitive environment?
a. technology
b. substitutes
c. legal factors
d. economic factors
e. demographics The information that Paul has collected in his competitive analysis can be referred to as:______.
a. corporate espionage.
b. competitive intelligence.
c. domain selection.
d. strategic vision
e. mission statement
Answer:
b. substitutes
b. competitive intelligence.
Explanation:
In the context, Paul and his wife wishes to open up a new restaurant in Beaufort and did much of analysis and research before taking any decision and studying the restaurant industry market.
The factor that Paul have considered in analyzing the competitive environment is the substitutes. The competitive environment as described by Michael Porter includes customers, substitutes, suppliers, new entrants, compliments and other rival firms.
The information Paul has collected in the competition analysis can be referred to -- competitive intelligence.
Competitive intelligence may be defined as the information that is necessary in deciding how best to manage in the competitive environment that the managers have identified.
Azus is an international food products company with subsidiaries in many countries. It employs host-country nationals extensively in each of its foreign locations. The corporate human resources (HR) function in Azus focuses primarily on coordinating relevant activities with their counterparts in each foreign location. Each subsidiary has its own fully functioning HR department that is responsible for managing all local HR issues for lower- and upper-level employees. In the given scenario, which of the following staffing models does Azus employ?
A) Regiocentric staffing model
B) Polycentric staffing model
C) Ethnocentric staffing model
D) Geocentric staffing model
Answer: Polycentric staffing model
Explanation:
The staffing model employed by Azus is the polycentric staffing model. This is an approach whereby the nationals of a particular country are employed in the central offices while foreigners are employed into their subsidiaries overseas. The foreigner are locals in their countey.
The advantages are that hiring locals are less costly and can improve employee morale and increase in productivity.
Larsen Company adds materials at the beginning of the process in Department 2. Data concerning the materials used in May production are as follows: Units Work-in-process at May 1 12,000 Started during May 32,000 Completed and transferred out during May 33,000 Normal spoilage incurred 3,000 Work-in-process at May 31 8,000 Using the weighted-average method, the equivalent units for materials are:
Answer:
$44,000
Explanation:
Calculation for the equivalent units for materials
Using this formula
Equivalent unit of material = Completed and transferred out+Normal spoilage+Ending work in process
Let plug in the formula
Equivalent unit of material = $33,000+$3,000+$8,000
Equivalent unit of material = $44,000
Therefore Using the weighted-average method, the equivalent units for materials are $44,000
if X and Y are complementary angles, SinX=15/17 and Cos X=8/17 find tan X
define the term feasibility study
Answer: An evaluation of the practicality of a suggested project or framework is a feasibility study. A feasibility study attempts to discover the benefits and limitations of an ongoing study critically and rationally.
I hope this helped :)
A motorcycle worth Rs.29500 was sold at a loss of 40% after an accident.Find the loss and selling price.
Answer:
the selling price and the loss is Rs 73,750 and Rs 29,500 respectively
Explanation:
The computation of the loss and selling price is shown below:
The selling price is
= Rs 29,500 × 1 ÷ 0.40
= Rs 73,750
And, the loss is
= Rs 73,750 × 40%
= Rs 29,500
Hence, the selling price and the loss is Rs 73,750 and Rs 29,500 respectively
What does zero economic profit mean in a perfectly competitive market in the long run?
A comparative balance sheet for Culver Corporation is presented as follows.
December 31
2020 2019
Assets
Cash 72740 22000
Accounts receivable 83220 67480
Inventory 181220 190480
Land 72220 111480
72,740 83,220 181,220 72,220 $ 22,000 67,480 190,480 111,480
Equipment 261,220 201,480
Accumulated Depreciation- (70,220) (43,480)
Equipment
Total $600,400 $549,440
Liabilities and Stockholders' Equity
Accounts payable 35,220 $48,480
Bonds payable 150,000 200,000
Common stock ($1 par) 214,000 164000
Retained earnings 201,180 136,960
Total Additional information:
1. Net income for 2020 was $127,440. No gains or losses were recorded in 2020.
2. Cash dividends of $63,220 were declared and paid.
3. Bonds payable amounting to $50,000 were retired through issuance of common stock.
Prepare a statement of cash flows for 2020 for Culver Corporation. (Show amounts that decrease cash flow wit sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Increase in cash = $50,740
Explanation:
The statement of cash flows for 2020 can be prepared as follows:
Culver Corporation
Statement of Cash Flows
For December 31, 2020
Particulars $ $
Net income 127,440
Adjustment to reconcile net income:
Depreciation expenses (w.1) 26,740
(Increase) decrease in current assets:
Increase in accounts receivable (w.2) (15,740)
Decrease in inventory (w.3) 9,260
Increase (decrease) in current liabilities:
Decrease in accounts payable (w.4) (13,260)
Net cash from operating activities 134,440
Cash Flow from Investing Activities
Sales of land (w.5) 39,260
Purchase of equipment (w.6) (59,740)
Net cash from investing activities 20,480
Cash Flow from Financing Activities
Cash dividends paid (63,220)
Net cash from financing activities 63,220
Increase / (Decrease) in cash 50,740
Beginning cash balance 22,000
Ending cash balance 72,740
Workings:
w.1: Depreciation expenses = Accumulated Depreciation in 2020 - Accumulated Depreciation in 2019 = $70,220 - $43,480 = $26,740
w.2: Increase in accounts receivable = Accounts receivable in 2020 - Accounts receivable in 2021 = $83,220 - $67,480 = $15,740
w.3: Decrease in inventory = Inventory in 2020 - Inventory in 2019 = 181220 190480 = -$9,260
w.4: Decrease in accounts payable = Accounts payable in 2020 - Accounts payable in 2019 = ($35,220 - $48,480) = $13,260
w.5: Sales of land = Land in 2019 - Land in 2020 = ($111,480 - $72,220) = $39,260
w.6: Purchase of equipment = Equipment in 2020 - Equipment in 2019 = $261,220- $201,480 = $59,740
On January 1, 2017, Ahmed Inc. loaned $316,837 to Cyrus Co. A zero-interest-bearing note (face amount, $400,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2020. The prevailing rate of interest for a loan of this type is 6%. What amount of interest expense will Cyrus recognize over the four years?
Answer:
the amount of interest expense for the four years is $76,041
Explanation:
The computation of the amount of interest expense for the four years is shown below:
= Loan amount × rate of interest × number of years
= $316,837 × 6% × 4 years
= $76,041
Hence, the amount of interest expense for the four years is $76,041
Why do you think that most consumers focus on the monthly payment instead of the overall cost of the car?
Answer:
Income and bills
Explanation:
Probably how it will fit in with they’re monthly bills
Explain why the concept of an organization as an iceberg is important.
Answer:An organizational iceberg can sink a business if the leaders don't take the time to find out what's beneath the surface of their culture. But once you recognize the issues at the different levels of the organizational iceberg, you can appropriately address them and keep your business in safe waters.
Explanation:IM SMART
The weekly time tickets indicate the following distribution of labor hours for three direct labor employees:
Hours
Job 301 Job 302 Job 303 Process Improvement
Tom Couro 10 15 13 2
David Clancy 12 12 14 2
Jose Cano 11 13 15 1
The direct labor rate earned per hour by the three employees is as follows:
Tom Couro $32
David Clancy 36
Jose Cano 28
The process improvement category includes training, quality improvement, and other indirect tasks.
a. Journalize the entry to record the factory labor costs for the week.
b. Assume that Jobs 301 and 302 were completed but not sold during the week and that Job 303 remained incomplete at the end of the week. How would the direct labor costs for all three jobs be reflected on the financial statements at the end of the week?
Answer:
A) attached below
B)
= $ 2336 will reflect as the direct cost at the end of the week
Explanation:
Attached below is a detailed solution
A) Journalize the entry to record the factory labor cost for the week
attached below
B) Assuming jobs 301 and 302 were completed but not sold during the week and Job 303 remained incomplete at the end of the week
productive hours worked on Jobs 301 and 302
Tom : 10 + 15 = 25 hours
David : 12 + 12 = 24 hours
Jose : 11 + 13 = 24 hours
productive hours worked on job 303 = uncomplete
Direct labor cost at the end of the week
= ( 25 * 32 ) + ( 24 *36 ) + ( 24 *28 )
= $ 2336 will reflect as the direct cost at the end of the week
The Steamboat Company began the month with 2,000 units in work in process which were 25% complete with respect to conversion costs. During the month, 10,000 units were started into production and the ending work in process consisted of 1,000 units which were 40% complete with respect to conversion costs. What was the number of equivalent units of production for conversion costs
Answer:
The number of equivalent units of production for conversion costs was 6,000 units
Explanation:
The 2,000 units at the beginning of the period is completed during the period and 10,000 units are started in the period.
Equivalent units of production = Completed Units + Portion of WIP completion at the end of the period )
Equivalent units of production = Completed Units + ( Numbers of units started in the period x Percentage of completed at the end of the period )
Where
Completed units = 2,000 units
Numbers of units started in the period = 10,000 units
Percentage of completed at the end of the period = 40%
Placing values in the formula
Equivalent units of production = 2,000 units + ( 10,000 units x 40% ) = 2,000 units + 4,000 units = 6,000 units