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yuradex [85]
3 years ago
13

The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1, 25

% completed 1,500 units Transferred to finished goods during June 5,000 units Equivalent units of production during June 5,200 units Determine the number of equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs. a.300 units b.1,000 units c.575 units d.200 units
Business
1 answer:
Mazyrski [523]3 years ago
8 0

Answer:

c. 575units

Explanation:

EUP - FIFO Method

Units

% completed

EUP

Units STARTED & COMPLETED

3,500 [5000 units – 1500]

100%

3,500

Units of beginning WIP

1,500

75.00%

1,125

Equivalent Units of Production for units transferred

4,625

Total Equivalent units = 5200 units

Equivalent units for units transferred = 4625 units

Equivalent units for ending inventory = 5200 – 4625 = 575 units

as the answer

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