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14 December, 17:02

A department had 65 units which were 20% complete in beginning Goods in Process Inventory. During the current period, 77 units were transferred out. Ending Goods in Process Inventory was 30 units which were 20% 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. 83B. 70C. 100D. 77E. 107

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  1. 14 December, 20:00
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    The correct answer is C. 100

    Explanation:

    Data

    Units in opening Work-In-Progress (WIP) 65

    Units added?

    Units transferred out 77

    Units in closing WIP 30

    Units added=Units transferred out+Units in closing WIP-Units in opening Work-In-Progress (WIP) = 77+30-65=42

    Equivalent Units in production

    Beginning WIP (% to complete) + Started and completed+Ending WIP

    Beginning WIP 52 (65 x 80%) (20% complete at the previous period, 80% in this period)

    Started and completed 42

    Ending WIP 6 (30 x 20%) (20% complete in this period)

    Total = 52+42 + 6 = 100
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