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ryzh [129]
3 years ago
6

Department s had 500 units 60% completed in process at the beginning of the period; 9,000 units completed during the period; and

600 units 30% completed at the end of the period. what was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? assume the completion percentage applies to both direct materials and conversion cost. a. 8,880 b. 9,000 c. 9,300 d. 8,700
Mathematics
1 answer:
Delicious77 [7]3 years ago
3 0

With the concept of first in, first out method, then we can use the formula below to solve for the number of equivalent units of production for that period.

 

number of equivalent units of production

= Total number of units completed during that period (A) – Number of units completed in process at the beginning of the period (B) + Number of units completed at the end of the period (C)

= A – B + C

We know that,

A = 9000 units

So we solve for B and C.

B is 60% of the 500 units, therefore:

B = 0.60 * 500 = 300

C is 30% of the 600 units, therefore:

C = 0.30 * 600 = 180

 

Substituting the values into the equation:

number of equivalent units of production  = 9000 – 300 + 180

number of equivalent units of production  = 8880 units

 

Answer:

A. 8880

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