The following production data were taken from the records of the Finishing Department for June:Inventory in process, 6-1 (30% completed) - 4,000 unitsCompleted units during June - 65,000 unitsEnding inventory (60% complete) - 7,000 unitsDetermine the number of material equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process. a. 68,000 unitsb. 72,000 unitsc. 76,000 unitsd. 7,000 units

Question

Business

Poole

11 March, 10:10

The following production data were taken from the records of the Finishing Department for June:Inventory in process, 6-1 (30% completed) - 4,000 unitsCompleted units during June - 65,000 unitsEnding inventory (60% complete) - 7,000 unitsDetermine the number of material equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out method is used to cost inventories and materials were added at the beginning of the process. a. 68,000 unitsb. 72,000 unitsc. 76,000 unitsd. 7,000 units

+3

Answers (1)

Know the Answer?

Aliya Huff · Answer 1

Option (a) is correct.

Explanation:

Given that,

Completed units during June = 65,000 units

Ending inventory units = 7,000 units

Beginning inventory units = 4,000 units

Number of material equivalent units of production in the June 30:

= Completed units during June + Ending inventory units - Beginning inventory units

= 65,000 units + 7,000 units - 4,000 units

= 68,000 units

Therefore, the number of material equivalent units of production is 68,000 units.