Answer:
Total equivalent unit of material = 140,000 units
Explanation:
<em>Equivalent units are used to apportion cost between completed units and work in progress. They represent notional whole units which represent incomplete work. </em>
<em>Under the first in first method , to account for completed units during a production period the opening inventory units are assumed to completed first before newly the newly introduced units.</em>
<em>So we can work out the equivalents units as follows:</em>
<em>Fully worked units :These represent units started this period of production and completed in the same period. This is given as 110,000 units</em>
Equivalent units (EU)
<em>Item unit Workings EU</em>
Opening inventory 25,000 0% × 25,000 = 0
Fully worked 110,000 100% × 110,000 = 110,000
Closing inventory 30,000 100%× 30,000 = <u>30,000</u>
Total equivalent unit of material <u>140,000</u>
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<em>Note that for the opening inventory already 100% material work has been done the preceding period , so there wont be any work left to be done in respect of materials.</em>
