Question

Salmont Corporation uses the FIFO method in its process costing system. The company reported 28,000 equivalent units of production for materials last month. The company's beginning work in process inventory consisted of 7,500 units, 40% complete with respect to materials. The ending work in process inventory consisted of 5,500 units, 70% complete with respect to materials. The number of units started during the month was:

Answer 1

Answer:

The number of units started  during month was 25150 units.

Kindly find attached excel file for detailed computations.

Step-by-step explanation:

The reported of 28000 relating to last month was uncompleted last month,but was completed this month ,hence I applied 100% to it.

However,the opening work in process of 7500 units was 40% complete last month,whereas the remaining 60% work was carried out this month.

The closing work in process of 5500 units was excluded in the first place but later brought back down the line because it was part of work commenced this month under review.

Download xlsx