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Romashka [77]
3 years ago
12

Department M had 2,000 units 40% completed in process at the beginning of June, 12,000 units completed during June, and 1,200 un

its 25% completed at the end of June. What was the number of equivalent units of production for conversion costs for June if the first-in, first-out method is used to cost inventories?
Business
1 answer:
goldfiish [28.3K]3 years ago
3 0

Answer:

11,500 was the number of Equivalent Units of Production (EUP)

Explanation:

EUP (FIFO) = Completed Units + Units at the end of the period - Units at the beginning of the period

EUP (FIFO): 12,000 + 1,200 x 25% - 2,000 x 40% = 11,500

Remember:

In the FIFO method to calculate EUP is considered the sum of work done on beginning inventory and percentage of work done on ending inventory adding to the started and completed units during the period.

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