A department had 600 units which were 40% complete in beginning Goods in Process Inventory. During the current period, 7,000 units were transferred out. Ending Goods in Process Inventory was 800 units which were 40% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process? A. 7,080B. 6,960C. 7,320D. 7,680E. 7,800

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Business

Ali Buchanan

9 October, 22:58

A department had 600 units which were 40% complete in beginning Goods in Process Inventory. During the current period, 7,000 units were transferred out. Ending Goods in Process Inventory was 800 units which were 40% complete. Using the FIFO method, what are the equivalent units produced if all direct material and direct labor are added uniformly throughout the process? A. 7,080B. 6,960C. 7,320D. 7,680E. 7,800

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Yurem Cabrera · Answer 1

The equivalent units produced is 7080

Explanation:

To get the units produced in this period we must add the part missing at the beginning to complete them + units transferred out + ending beginning

To complete the units at the beginning, wwe have to produce 60% of 600 units

600 x 60% = 360

7,000 units were transferred out (we have 600 from the beginning, so we have to produce 7000-600=6400

Al the end, we have 800 at 40% = 320

Adding the 3 items

UP=360+6400+320=7080