The following production data were taken from the records of the Finishing Department for June: 1,500 Inventory in process, June 1, 25% completed units Transferred to finished goods during June Equivalent units of production during June 5,000 units 5,400 units Determine the number of equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs. O a. 775 units O b. 200 units O c. 575 units O d. 300 units Question 3 of 4
The following production data were taken from the records of the Finishing Department for June: 1,500 Inventory in process, June 1, 25% completed units Transferred to finished goods during June Equivalent units of production during June 5,000 units 5,400 units Determine the number of equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories. The completion percentage of 25% applies to both direct materials and conversion costs. O a. 775 units O b. 200 units O c. 575 units O d. 300 units Question 3 of 4
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:The following production data were taken from the records of the Finishing Department for June:
1,500
Inventory in process, June 1, 25% completed units
Transferred to finished goods during June
Equivalent units of production during June
5,000
units
5,400
units
Determine the number of equivalent units of production in the June 30, Finishing Department inventory, assuming that the first-in, first-out method is used to cost
inventories. The completion percentage of 25% applies to both direct materials and conversion costs.
O a. 775 units
Ob. 200 units
O c. 575 units
O d. 300 units
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Step 1
EQUIVALENT UNITS OF PRODUCTION
Equivalent Production is represents the production of a process in terms of completed units. In other words it means converting the incomplete production units into its equivalent of complete units.
Equivalent units of work-in-progress
= Actual No.of Units in Process of Manufacturing x Percentage of work completed
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