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sasho [114]
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]3 years ago
4 0

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

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