Answer:
Total equivalent units =7,790
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>
Equivalent Units = Degree of Completion × Units of inventory
<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>
Fully worked =8000 - 600 = 7400
<em>The fully worked represents units of inventory started this current period and completed in the same period</em>
<em>Items Working s Equivalent units</em>
Opening inventory = 600× 40% = 240
Fully worked 7,400× 100% = 7400
Closing inventory = 500× 30% = <u>150</u>
Total equivalent units <u>7790</u>