Question

Salmont Corporation uses the FIFO method in its process costing system. The company reported 42,000 equivalent units of production for materials last month. The company's beginning work in process inventory consisted of 9,500 units, 35% complete with respect to materials. The ending work in process inventory consisted of 7,500 units, 65% complete with respect to materials. The number of units started during the month was:

Answer 1

38,450 units

Step-by-step explanation:

The computation of the number of units started during the month is shown below:

Particulars Units in process Percentage of completion Equivalent units completed

Equivalent units 42,000 units 100% 42,000 units

Less:

Beginning work in process 9,500 units 65% 6,175 units

Ending work in process 7,500 units 65% 4,875 units

Equivalent units for started and completed 30,950 units

Add: Ending Inventory units 7,500 units

The number of units started during the month 38,450 units