Answer:
Total equivalent unit = 15,650 units
Explanation:
Equivalent Units
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
Equivalent Units = Degree of Completion × Units of inventory
+
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
Fully worked = newly introduced - closing inventory'
Fully worked = 14,000 - 3,000 = 11,000
Items Unit Working Equivalent units
Opening inventory 4,000 4,000× 60% 2,400
Fully worked 11,000 11,000× 100% 11,000
Closing inventory 3,000 3,000 × 75% <u>2250
</u>
Total equivalent unit <u>15,650
</u>
Total equivalent unit = 15,650
