The following production data were taken from the records of the finishing department for June: Inventory in process, June 1, 25% completed 1,500 units
Transferred to finished goods during June 5,000 units
Equivalent units of production during June 5,200 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.
A)575 units
B)200 units
C)1,000 units
D)300 units

Question

Quizplus · Accepted Answer

Equivalent units of production = (Units in beginning inventory x % completed in beginning inventory) + (Units started and completed during the period)= (1,500 units x 25%) + (5,000 units)= 375 units + 5,000 units= 5,375 unitsEquivalent units of production in the June 30, finishing department inventory = 5,375 units - 5,200 units= 175 units

The Following Production Data Were Taken from the Records of the Finishing