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3 years ago

The following production data were taken from the records of the Finishing Department for July:

Business

1 answer:

SashulF [63]3 years ago

7 0

Answer:

c. 37,000 units

Explanation:

Calculation to Determine the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories

Using this formula

Total equivalent units for direct materials= Transferred to finished goods during the month of July + Ending work in process during the month of July - Inventory in process as on July 1

Let plug in the formula

Total equivalent units for direct materials= 37,500 units + 3,500 units - 4,000 units

Total equivalent units for direct materials= 41,000 units - 4,000 units

Total equivalent units for direct materials= 37,000 units

Therefore the total equivalent units for direct materials, assuming that the first-in, first-out method is used to cost inventories is 37,000 units

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