Answer:
Total equivalent units= 10,490
Explanation:
<em>Equivalent Units</em>
<em>To apportion cost between work in progress and completed units in a particular period, we use equivalent units. Equivalents units are notional whole units which represent incomplete work and are used to apportion cost between completed units and work in progress</em>
<em>Equivalent Units = Degree of Completion × Units of inventory</em>
<em>Under the first in first out(FIFO) method, to account for the units of work completed the opening inventory are separated and distinguished from the units newly introduced in the period.</em>
<em>Another principle under this method is that only the percentage of work yet to be completed on the units of opening are done in the current period</em>
<em>Fully worked = 11,400 -2000 = 9400</em>
<em>The fully worked represents units of inventory started this current period and completed in the same period. </em>
It implies that out of 11,400 completed in the period 2,000 units represent the opening inventory carried forward and the balance is fully worked
Item working Equivalent units
Opening inventory (100-59)%× 2000 = 820
Fully worked 100% × 9400 = 9400
Closing inventory 30% × 900 = <u>270</u>
Total equivalent units <u> 10490</u>
