Question

If Department H had 500 units, 60% completed, in process at the beginning of the period, 6,000 units were completed during the period, and 600 units were 30% 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? (Don't forget to calculate "started and completed". That would be 5,500 units because it is the transferred out of 6,000 minus beginning inventory of 500.)

Answer 1

5,880

Step-by-step explanation:

The computation of number of equivalent units of production is shown below:-

Completed units = 6,000 × 100%

= 6,000

Ending units = 600 × 30%

= 180

Total = Completed units + Ending units

= 6,000 + 180

= 6,180

Beginning units = 500 × 60%

= 300

So, Number of equivalent units of production = Total - Beginning units

= 6,180 - 300

= 5,880