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

Question

Business

Kolby Hoover

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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Answers (1)

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Amelie · Answer 1

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