Question

"If Department K had 2,500 units, 45% completed, in process at the beginning of the period, 15,000 units were completed during the period, and 1,200 units were" 40% completed at the end of the period, what was the number of equivalent units of production for the period if the first-in, first-out method is used to cost inventories

Answer 1

14,355 units

Step-by-step explanation:

The computation of the number of equivalent units of production under the FIFO method is shown below:

= Beginning work in process × remaining percentage + units started and completed × completion percentage + ending work in process × completion percentage

= 2,500 units × 55% + 12,500 units × 100% + 1,200 units × 40%

= 1,375 units + 12,500 units + 480 units

= 14,355 units

The units started and completed is come from

= 15,000 units - 2,500 units

= 12,500 units