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If 10,000 units that were 40% completed are in process at November 1, 80,000 units were completed during November, and 12,000 were 20% completed at November 30, the number of equivalent units of production for November was 75,600. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.)

a. True
b. False

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facundobuzzetti

Answer:

Number of equivalents units= 78,400

Explanation:

Giving the following information:

Beginning inventory= 10,000 units that were 40%

Units completed= 80,000

Ending inventory= 12,000 were 20% completed

We will determine the number of equivalents units using the following structure:

COST PER EQUIVALENT UNITS:

Beginning work in process = beginning inventory* %incompleted

Units started and completed = units completed - beginning WIP

Ending work in process completed= Ending WIP* %completed

=Number of equivalent units

Beginning work in process = 10,000*0.6= 6,000

Units started and completed = 80,000 - 10,000= 70,000

Ending work in process completed= 12,000*0.2= 2,400

= 78,400

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