Question

Beginning inventory amounted to 1,000 units. This period, 4,200 units were started and completed. At the end of the period, the 3,100 units in inventory were 30 percent complete. Using FIFO costing, the equivalent production for the period was 5,330 units. What was the percentage of completion of the beginning inventory?

Answer 1

Answer:

80%

Explanation:

Given:

Beginning inventory = 1,000

Number of units started and completed = 4,200

also, 30 % of 3100 units were completed = 930 units  

The equivalent production for the period = 5,330 units

now,

The number of units not completed = Total units produced - (30 % of 3100 units) -   (Number of units started and completed )

or

The number of units not completed = 5,330 - 930 - 4200 = 200 units

thus,

the number of units completed = Total inventory - number of units not completed

or

= 1000 - 200 = 800 units

thus, percentage of completed units = (Completed units / total inventory) × 100

on substituting the values, we have

percentage of completed units = (800 / 1000) × 100 = 80%