Question

During August, the Filtering Department of Speedwell, Inc. Had a beginning Work-IN Process Inventory balance of 160 units with costs of $ 60,000. During the month, it started and completed 290 units. It had 30 units in the ending Work-in Process Inventory. What is the number of equivalent units of production for transferred in units in the Filtering Department in August under the first-IN, first-out (FIFO) method?

Answer 1

Answer: 320 units

Explanation:

The equivalent units of production for transferred in units in the Filtering Department in August under the first-in, first-out (FIFO) method goes thus:

Total units completed= 160 units + 290 units = 450 units

Beginning WIP = 160 units

Ending WIP = 30 units

Equivalent units of production:

= 450 + 30 - 160

= 480 - 160

= 320 units