A department had 65 units which were 20% complete in beginning Goods in Process Inventory. During the current period, 77 units w

Question

3 years ago

6

A department had 65 units which were 20% complete in beginning Goods in Process Inventory. During the current period, 77 units w

ere transferred out. Ending Goods in Process Inventory was 30 units which were 20% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process?A. 83B. 70C. 100D. 77E. 107

Business

1 answer:

Rina8888 [55] · Answer 1 · 2022-01-11T06:47:08+03:00

Answer:

The correct answer is C. 100

Explanation:

Data

Units in opening Work-In-Progress (WIP) 65

Units added ?

Units transferred out 77

Units in closing WIP 30

Units added=Units transferred out+Units in closing WIP-Units in opening Work-In-Progress (WIP)=77+30-65=42

Equivalent Units in production

Beginning WIP (% to complete) +Started and completed+Ending WIP

Beginning WIP 52 (65 x 80% )( 20% complete at the previous period, 80% in this period)

Started and completed 42

Ending WIP 6 (30 x 20%) (20% complete in this period)

Total =52+42+ 6= 100