Question

The Finishing Department had 11,500 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30% complete as to conversion costs. 34,500 units were received from the previous department. The ending Work-in-Process Inventory consisted of 4,500 units which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. What are the equivalent units of production for materials during the period? 34,500 units. 32,250 units. 30,000 units. 27,500 units.

Answer 1

Answer:

The equivalent units of production for materials during the period is 32,250 units.

Explanation:

Using first-in, first-out

Units  Started and completed  are the units received from the previous department - ending

34,500- 4,500=30,000

Units in production for materials  

Beginning WIP                      0   ( the whole materials were added at the previous period)

Started and completed        30,000

Ending WIP                            2,250 (4,500 x 0,50) (50% complete as to materials)

Total materials  32,250